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International Markets Soar as U.S. Markets Level Off |
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As 2007’s Dow, S&P and NASDAQ jumped up and down, the international markets, with the exceptions of Russia and Saudi Arabia, continued their six month rise and excellent performance. Poland’s performance was especially notable within the “New Europe” countries, with a 34% rise, followed by Turkey (22.8%). Also performing very well were the Asian markets.
Spectrem’s research shows that the affluent are responding to these trends. When asked, “How Likely Are You to Invest or Continue Investing Internationally?” 40% of the total and 51% of those under age 50 responded that they were likely or very likely. Research also shows that 30% of affluent investors are interested in China and 20% in Europe for their international investments, again, mirroring the trend in the markets. Because the performance of the U.S. market in the first six months of this year was among the weakest in the world, those who have chosen to invest internationally have shown great foresight, and probably receive impressive dividends for their troubles; the Tokyo market has doubled since 2003, and Shanghai and Mumbai (India) were both up as well.
"Global markets are going crazy, but there's a reason for that since people believe we are in the middle of a Goldilocks scenario: tame inflation and good growth," said Kim Hyun-tae, a fund manager at Landmark Investment Management in Seoul.  
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High Net Worth Advisor Insights Newsletter April 2008
