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By Emily Sanders
PINK Magazine
March/April 2008
Looking for a smart 2nd quarter investment? Here are three ideas with an international perspective.
South Africa. The financial backbone of the African continent is a leading supplier of gold, platinum, coal and diamonds to more than 80 countries. An easy way for an investor to gain exposure to that economy is to invest in mutual funds focused on Africa, or through the purchase of certain exchange-traded funds (ETF’s). Two funds to investigate are the SPDR S&P Emerging Middle East and Africa fund (GAF) and the iShares MSCI South Africa Index fund (EZA).
Commodities. Investors can buy into commodities like oil or gold by investing in individual companies, such as oil company stocks. But the best option is to identify an ETF dedicated to a specific commodity, such as StreetTracks Gold Shares (GLD). Gold can be a hedge against inflation and a safe haven during times of geopolitical uncertainty, as well as an antidote to the dollar’s current weakness.
Asian real estate. In China and India, millions of people are migrating to cities for new housing and increasing prices on existing properties. One investment option here would be a U.S.-based Real Estate Investment Trust (REIT) that has added Asian exposure. Another options would be the SPDR Dow Jones Wilshire International Real Estate fund (RWX).
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