So, last night I decided it was time to really try to get my head around Asia finance. Daniel had taken Jayden to the library for story-time and Ethan had passed out from crying, so I actually had some real, undisturbed time – quite a rarity in my house!
Here’s how this all started. My brother Jack and I have – for as long as I can remember – been discussing easy ways to make money. Nothing has ever really come of it – from selling hairdryers door-to-door to online data entry jobs; trying to navigate different site advice on the best ways to make money online or even selling specially-made cookies to neighbors. Unfortunately, all that we have gleaned from these efforts are a big headache while making a few measly extra bucks on the side – hardly worth it.
So a few weeks ago Jack told me that with the inheritance we still have since our nana’s passing, he was sure he had a foolproof way of making it make us rich, being, Asia finance. His buddy Dick had been playing around in this field for the last six months or so, he said, and it had really done a lot for his bank balance. I told him that I’d first have to do my own research and then get back to him.
Asia Finance: 101
This is what I found out, in a nutshell (or, as close to a nutshell as one can get on this somewhat expansive topic). First, it seems that it’s very popular, because even after there was some crash in Asia’s economy back in the 1990s, it remained a pretty sure thing and people weren’t exactly running away from it. That immediately gave me initial confidence and somewhat more interest in finding out more about this.
Second, it seems I already know a lot more than I thought – big electronic companies like Sony are Asia-owned and since I am confident in that market (who isn’t?), it could be a good one to start with. However, what I wasn’t so aware of was that many of these companies have high profiles in the US market. But if Sony releases some new game console, making an investment in its stock will be a direct Asian investment and a pretty good, safe option. I’m very into safe. Jack is too, but perhaps not quite as much as me, but I think he’ll listen to me when it comes to nana’s inheritance.
So that’s Japan taken care of. Then I looked into what China might be able to offer and it seems that it’s a good idea to put some eggs in a smaller basket there, at least initially. For example, not-so-large oil companies such as PetroChina have some pretty impressive options for investors. And then it occurred to me, ooh, I may be becoming an “investor” and I thought that sounded pretty cool!
I also discovered that putting capital into companies was probably a safer bet than actually dealing with the whole Asian stock market as that appears to be a bit too unpredictable and complicated for my limited talents to date. Maybe in the future, but we’re just not quite there yet. And it’s the same for hedge funds too.
I was just about to look a bit further on this topic, when I heard the sweet dulcet tones of Jayden screaming, “mommy, mommy, we heard all about the Lion, the Witch and the Wardrobe and it was cool,” and I knew my night of research had reached its natural end!