Jul 23 2008
How to Follow the REAL BIG MONEY — on the Cheap
The easiest way to pocket gains in emerging markets is to follow the money.
This may sound odd coming from a bunch of contrarians who usually bet against Wall Street. But we’re not talking about Wall Street this time. We’re talking about the REAL BIG MONEY…Sovereign Wealth Funds.
SWFs are usually owned by the central bank of a government that has trillions in surplus. SWFs have grown in power most recently with the commodity boom. Surging prices in oil, natural gas and precious metals have given SWFs in the Persian Gulf and Asia in particular increased clout in how they want to shape the world.
Now we find that SWFs in the Persian Gulf are moving into oil-rich Southest Asia — tipping off investors to stable, long-term growth opportunities.
At the end of last year, the Qatari Investment Authority (QIA) signed a deal with the Indonesian government to establish a $1-billion fund aimed at improving the country’s infrastructure. Once a government starts investing in infrastructure, you know that the economy is set for growth.
