What is a good investment during this volatile period? The Asia market is still surprisingly resilient in the face of the credit crunch.
The majority of the returns from the Asia market comes from the Hong Kong market along with the promise of a huge infusion of Mainland Chinese money.
One asset class that stands out is the long term government bond. Legg Mason Global Bond invest in US and Europe government bonds. It has not been performing well from 2004 to the early 2007 due to raising interest rates and inflation. With the loom of a possible recession, Government bonds rallied strongly. It is recommended that investors reallocate their bond components to long term government bonds, away from the shorter term money market funds. A decent return of 5% is expected from the bond funds from now onwards.
The majority of the returns from the Asia market comes from the Hong Kong market along with the promise of a huge infusion of Mainland Chinese money.
One asset class that stands out is the long term government bond. Legg Mason Global Bond invest in US and Europe government bonds. It has not been performing well from 2004 to the early 2007 due to raising interest rates and inflation. With the loom of a possible recession, Government bonds rallied strongly. It is recommended that investors reallocate their bond components to long term government bonds, away from the shorter term money market funds. A decent return of 5% is expected from the bond funds from now onwards.
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