Sunday, August 23, 2009

The best investments for 2009

In the beginning of the last week it looked like this rally is losing steam. But we finish the whole week again higher. I guess reality check will come after summer time when most of the traders come back from holiday and we will see again standard trading volume.

Today I would like to use this post for comparison of different assets classes as an investments. The chart below shows performance since the beginning of the year.

Generally stocks were the place to be in for the first half of 2009. Emerging markets equities are leading the ranking with 60% return, followed by developed markets equities 34% and REIT 22%.

For the rest of 2009 I prefer still emerging markets as a best investments. But I'd be more selective with focus on Asian markets ex. Japan and China. Countries like Thailand, South Korea or Singapore. These markets don't seem so overheated like Chinese and local currencies are traded at several years lows. This makes Asian equities even more interesting investment for international investors.

I made the comparision based on ETF which represents different assets.

High Yield Bonds iShares iBOXX High Yield (HYG)
TIPS iShares Barclays TIPS (TIP)
Emerging markets bonds iShares EM bonds (EMB)
Cash SPDR 3 month T-Bill ETF (BIL)
US bonds Barclays agg. Bond fund (AGG)
Foreign Dev Market bonds iShares Intl. bond fund (IGOV)
Commodities iShares GSCI commodity (GSG)
Emerging markets stocks iShares MSCI EM Index (EEM)
US stocks iShares Russell 3000 (IWV)
Foreign Dev Market stocks iShares MSCI EAFE Index (EFA)
REITs Wilshire REIT Index (RWR)

For all ETFs you can receive free trend analysis. It is enough if you type ticker here.


2 Responses to "The best investments for 2009"

Forlan said... August 25, 2009 at 2:07 AM

it is a great idea

Mike said... August 26, 2009 at 3:26 AM

That's a great post, I like how you put info over there, I wanna to use some of those helpful tips in my Stock Market Analysis Website , thanks a lot for sharing that with us.