Does anyone know which stock market to invest in which is rising rapidly?

Question

I am trying to find a good stock market to invest in, and I would like to get some help in deciding, does anyone know a good one? I appreciate the help.

Answer 1

The Chinese stock market is growing very rapidly as a result of China's booming economy. (Last year's GDP was somewhere between 8 and 10 percent). But be careful.

Investing outside the United States can be a risky proposition. The accounting standards very from country to country making it dfficult to understand financial statements. And if you need to speak to someone at a company well, its not easy.

Many foreign companies do not have an investor relations coordinator and even if they do, they typically do not speak English. Another problem with fast growing, foreign stock markets is over valuation. Japan is a perfect example.

During the 1980's, Wall Street and Tokyo were in love with Japan's stock market. We were convinced, as were the Japanese, that Japan made everything from cars to Walkmans cheaper and better than everyone else. Because of this many stocks in Japan carried PE multiples above 100!. Eventually reality set in and by the early 90's many of these stocks dropped substantially in price.

So be careful. If your going to invest overseas, make sure the information you get is reliable. Make sure the stocks you invest in have realistic PE's. And make sure you diversify (The US market is very expensive at the moment but owning a couple US stocks is still a good idea)

Answer 2

This is not a sound invetsment logic. Today the market is up , tomorrow it could go down. Investment in Stock market should be made with to have a decent return with a long term( 5 yrs) view.The returns are certain only in the long run. Since, you are starter, I would not advise you to go directly into equity.It will be very risky, since you lack the basic knowledge and expertise. I would rather advise you to invest in stock market but via the mutual fund route. It is relatively much risky but would give you decent returns in the long run. You can expect 25-30% p.a return on your invetsments but again make sure you take the help of a person who has sound knowledge of mutual fund, in deciding which fund to select. View the past performance of the fund and the track record of the fund house.

Answer 3

how about dow jones