Safety in Global Markets

Posted on 09/08/2011

Recently we can across an interesting excerpt on Jim Rogers' blog.  For those who don't know who Jim Rogers is, he is an author, commentator, commodity, and international investor whom we feel his insights and commentary are invaluable.  In November of last year, we featured an article on Jim Roger's exchange-traded note line up as well as provided a link to the interview that we had with him.  To access that podcast, click here.  

Jim Rogers, like few others, can say a great deal with an impressively compact number of words when it comes to finding a safe place to invest in the international arena.  His most recent blog posting was simply this:

"The largest creditor nations in the world now are China, Korea, Japan, Taiwan, Hong Kong, Singapore. Those are all Asian countries. This is where the assets are. This is where the energy is, the dynamism is."

~Jim Rogers

In an investment backdrop that is indeed still very sensitive to sovereign debt crisis du jour, whatever it may be, does lend itself toward the inquiry of whether there is "safety" in markets of creditor nations.  Indeed, while Japan's markets have had their own set of difficulties this year, the "ex-Japan" funds focusing upon the Pacific Rim, and thus many of the nations mentioned in Mr. Roger's comments, have held up rather well.  The PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF) is shown below, and has a heavy focus upon Australia (40%), but nearly all of the remaining exposure is in South Korea, Hong Kong and Singapore.  Shares of PAF offers a means for gaining exposure to "creditor" nations with one transaction.

Country Dispersion for PAF

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