Financial Answers "IN SIMPLE LANGUAGE"

Let’s talk about a specific investment area. A lot of people have been asking me lately what they should be doing with their money.  Since I don’t sell investment products or am affiliated with any investment institutions I have often replied that people should talk with their investment advisors.  But today I want to talk about a specific investment area you should be aware of.

 

You may want to look at these BRICs

 

We are all aware of the financial devastation that this world wide recession has had on most of the world.  You look at the United States and see an ever increasing amount of unemployment and job loss in every corner of the country.  No one has been untouched by the financial problems this recession-maybe it should be called a mini depression-has had on families all across this great country of ours.

 

I am not so sure that we are done with the financial problems that have developed over the last umpteen years.  What still scares me is the commercial real estate problem that exists and hasn’t been addressed and the upcoming credit card tsunami that is rolling towards us.

 

If you haven’t thought about the credit card storm brewing, now may be the time.  With unemployment at record levels with no apparent end in sight, sooner rather than later, people are going to focus on paying their mortgages, buying food, paying their medical bills and letting their ever mounting credit card debt go unpaid.  When that happens we will see another mountain of debt come crashing down on our economy with more bankruptcies and companies going out of business. Let’s all hope that I am wrong.

 

So where does using these “BRICs”  help build up your foundation and hopefully prepare and protect you better than you are?  These BRICs are four countries that are experiencing financial problems like the rest of the world but have a lot more going for them currently than the rest of the world.

 

Let’s look at these BRICs

 

First of all these BRICs are the countries of Brazil, Russia, India and China.  Now these four countries got hammered as badly as most other countries.  However, they hit their bottoms and recovered about four months sooner than the rest of the world.  With the exception of India, these countries have been making remarkable progress even with what is still taking place in the rest of the world.

 

India and China, the second half of the BRIC, have a combined population of approximately 2.5 billion people.  That is more than three times the combined population of North America and Europe.  Add the countries of Brazil and Russia, the first half of the BRIC, with their enormous mineral resources, and you can see how these four countries can complement and work with each other to develop great prosperity in all four of these countries.

 

So what should you be doing about this?  Well, if you are like my friends asking me what and where they should be investing, the BRIC is part of what you should be looking at.  You cannot, unfortunately, afford to look at domestic investments only any longer.  The world is too connected and too intertwined to neglect to look outside the United States.  Talk with your investment advisor and get their thoughts on the BRIC.  There are some good mutual funds out there that invest in all four countries together or you may want to look at each country individually.  That is up to you and what your investment goals are. 

 

Remember, investing is about being proactive.  The worst thing you can do for yourself when it comes to investing is to do nothing.  Do your homework.  Work with your investment advisor and you will be back on the road to a secure financial future.

 

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