Stock markets around the world: your options
Looking to the wider global stock markets has long been a popular avenue for those who want to decrease their exposure to one country’s fortunes. From the many thriving stock markets of Europe to emerging stocks and shares powerhouses such as China, there are plenty of different options available for those who want to expand their portfolio and diversify their risk. This article will explore these options and more – and help you to decide which international stock market is right for you.
Europe: lots of choice
There are plenty of stock markets available across Europe, and each one comes with its advantages. The London Stock Exchange, of course, is one of the most famous, and it perhaps offers one of the widest ranges of choice with over 2,000 firms from which to choose. Europe is also home to Germany, which acts as one of the world’s most booming economies at the moment – so investing in a firm from the Frankfurt Stock Exchange or other similar index could be a smart move.
Australia: high information
There are plenty of advantages to investing in Australia. While no economy can be considered completely “safe” or risk-free, Australia has in the past been somewhat more immune to economic problems than other developed economies – for example, the sub-prime mortgage crisis, which affected other major economies, didn’t really hit here.
However, like many developed economies, Australia’s thriving stock market is also fueled in part by a strong flow of stock market information, share tips and more. From the Sydney Morning Herald to the Herald Sun, there are plenty of top newspapers that contain expert business columns designed to help you make savvy stock trading decisions. And with the Stockies Awards for Australian brokers also on hand to point you in the direction of good brokers, this is clearly an economy with a strong information provider scene.
China: lucrative, yet tough
More and more Western investors are starting to shift their trading focus towards nations such as China. Given that China has a gross domestic product of around US$12bn, that’s really no surprise. However, it’s still tough to break into this economy if you’re an outsider, and it can even be prohibitively difficult in some cases.
There is a range of complicated barriers that investors may face: stocks have in the past been broken down into letter-coded types, for example, many of which are either by law or in practice limited to those who are Chinese nationals. It’s also the case that the usual facilitation tools for those who want to invest in companies – stock markets – don’t always reflect the actual value of a firm or sector. In reality, buying stock in a Chinese firm will probably need to be done directly – which, for all its potential profitability in this lucrative market, may be more trouble than it’s worth.
The global stock markets hold lots of potential for those who want to build a more diverse and exciting trading portfolio. From looking to high-profile economies such as China to considering going down under and trying lesser-traveled economies such as Australia, there will be an international stock market that’s right for you somewhere around the world.