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Spice Up Your Life With International Investments

Could China Be the Key to Your Fortune?

International investments make up half of my retirement portfolio, and I’m thinking of putting even more in this sector. Why? Despite volatility, developing markets are where you find the most growth. Mature markets like the U.S. are already, well, mature.

According to a 2007 study by Goldman Sachs, the combined Gross Domestic Products (GDP) of Brazil, Russia, India, and China (a.k.a. BRICs) will overtake the combined GDP of the G6 countries (currently the 6 largest world economies): U.S. , Japan, United Kingdom, Germany, France, and Italy by the year 2040. In case you forgot from high-school econ class, GDP is the total market value of all goods and services produced by a country in a year, and is a key indicator of a country’s economic health. And coincidentally, the year 2040 is about when I plan to retire.

Just to put it in perspective, according to the Economist’s Country Briefings, the U.S. GDP grew by 2.2% in 2007. China’s skyrocketed 11.9%. India’s increased by 8.7%. See my point?

So how do you get a piece of these rapidly growing, developing economies? Luckily, there are lots of mutual funds that would fit nicely in your IRA or 401K accounts. Check out the “Foreign” Category of Money Magazine’s list of the 70 best mutual funds you can buy.

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