Investing in Internet Service Providers – International Investment Opportunities

When the first internet boom came around in the late 1990’s, this caused many investors in internet service providers to make a great deal of money. However, this bubble burst, and now it is not as carefree of a process to go about investing in internet service providers. This area of the investment market is considered to be fairly stable, but some caution is still necessary, as it is with any investment in the current global economic downturn. More and more investors are looking at opportunities abroad to make their money in this field.

Countries in Asia, for example, such as China, India, and Indonesia are experiencing a higher demand for consumer products and internet services than ever before. Those who wish to go about investing in internet service providers might want to look at these markets, rather than the existing providers at home. At the moment, China and India both already have almost 500 million internet users, and that number is growing rapidly as more and more of the continent adds internet access to homes and businesses.

It’s estimated that there will be up to 700 million users in these two countries by 2015, and there is a similar rate of growth projected throughout the rest of the Asian continent, including Malaysia and South Korea. Online retail sales are growing, so in addition to investing in internet service providers, savvy investors might want to think about investing in those companies that have expanded their services to offer online shopping. Social networking, downloading, and business usage of the internet has grown as well.

By looking at these trends of internet use in each country, you can determine whether or not investing in internet service providers in Asia or at home is a good idea for the near future. There are many ways that you can invest in this internet growth, from online retailers to social networking companies, as well as content providers and graphic design firms that will be designing websites. You can look at individual businesses throughout Asia, or look at mutual funds to get started investing. Before you start investing in this area, however, it’s best to work closely with your broker to follow the latest internet trends. At the moment, even in a harsh economic climate, internet services are expected to be one of the strongest long-term growth industries to invest in, making this a fairly safe opportunity according to market research.

Investing in China – How to Get Ahead with International Investments

While many other countries have experienced a serious economic slowdown, China has continued to be a strong player in the global financial market. While growth has slowed somewhat in the past couple of years, investing in China can still be a good idea. However, as with any other type of investment, it’s important to weigh the risks before you decide what type of industry or sector to invest in. There are certain aspects of the Chinese economy that are doing better than others, and as an international investor, if you have the right guidance and expert advice, you can follow suit and broaden your portfolio.

Real estate, for example, may not be the best industry to invest in anywhere in the world at the moment. After a frenzied period of real estate development, there are now many empty buildings in China, with brand new skyscrapers left without tenants. When investing in China, you may wish to stay away from the real estate market unless you have a strong lead on a promising new development. Because the US is China’s largest trading partner, the two economies are intertwined. It’s possible to get a good deal on stocks or other investment opportunities if you know where to look.

There are a few ways to make your investment a safer bet. To begin with, when you are investing in China you will want to hedge your bets and protect your shares with collaring and other hedging options. Collaring can protect shares from any large downward moves, making your international investment far safer. Another factor to consider is whether or not to choose multinational corporations to invest in, or to choose Chinese companies directly. If you have little knowledge of the Chinese market, you may wish to stick to these multinationals for ease of research.

A safe way to go about investing in China is to choose a broad mutual fund, such as Matthews China or other options of this nature. This can be easier than trying to hand-pick individual Chinese companies to purchase shares in. With an annual growth rate that still is sitting at 9 percent, China can be an interesting and profitable market to pursue investments in. With a bit of caution, some professional guidance, and openness to negotiation, you can end up with some great deals. Mutual funds can be a good way to get started, while you gain a greater understanding of the market.