SINGAPORE: WHAT CAN WE LEARN ABOUT INVESTING FROM BEING OVERSEAS?

One of the great things about international travel is discovery. Not only of new sights and sounds, but perspective. Sure, landmarks, architecture, culture, beaches and beauty, museums and mountains are why we all travel abroad. But when you are there, you also get a first hand for what they are thinking and investing in, easier than on the internet.

My recent (short) trips to Hong Kong and Sinapore demonstrate a few things that investors may wish to take note of.

First, the US and the US markets still dominate. We are what they write about and what influences them. They care about our stock market, that JP Morgan paid $13 billion to Uncle Sam and what direction we believe we are going in. Two, international bankers and money managers believe there’s good things to follow from investing in Europe and the emerging markets right now and in 2014. Growth looks good. Sure, a lot of Europe is un-employed and many young people new to the jobs market have had their expectations rocked or have moved away-and don’t forget the debt/Euro/fiscal mess issues which are still present— but they are being dealt with. Emerging markets offer growth and new lands of opportunity. Emerging markets may not repeat the performance of the last decade but the global economy has weathered the big storm, and while there is still more work to do, it’s being handled and everyone is moving foward.   I leave it to you to determine how much of your portfolio is allocated to non US investments and what percentages you want that allocation carved up into: index funds, ETFs, mutual funds, European (alone) funds, emerging markets or just plain old international stocks. Three of my favorites are: the Oakmark International Fund (www.oakmark.com), the Dodge & Cox International Stock Fund (www.dodgeandcox.com) and the Vanguard Emerging Markets index fund (www.vanguard.com). Finally…..hydrogen cars. Google it. Check it out. Their time may be now—actually over the next three years and for the rest of the decade. Check out the concept cars and the ones which are being limitedly test run and lent to car buffs and car writers. Mercedes, Toyota, Honda, Hyundai. If we get enough filling stations to let everyone refuel, this could change the world.

Finally, I’m repeating (constantly) that for those who believe the market will pull back, take a look at Wally Weitz’ Weitz Partners Value Fund (www.weitzinvestments.com). It holds almost 30% in cash as of the end of September, has a great manager with an enviable track record. ….Just what you want if you believe a sell off or worse may be on the horizon and are looking to place cash.