February 5, 2012

Is Australia the forgotten country you may make money from?

Wikipedia: A contrarian is a person who takes up a position opposed to that of the majority, no matter how unpopular. This could be a good thing when investing, buy when the asset is unpopular and sell when it is popular. For example, buy gold when no-one else does and sell it when everyone else is talking about how much money they are going to make from their recent gold purchase.

One country you don't hear much about these days, at least not here in northern Europe, is Australia. But, are kangaroos really a good commodity to invest in, or can you find more investment opportunities in Australia? David Dittman says you can:
  • Australia was the only developed economy that did not sink into a great recession in 2007-2009. Because of the large commodity resources available in the country, Australia is similar to the emerging markets. One can find coal, iron ore, natural gas, and other resources
  • The debt-to-GDP ratio was 5,5 percent in 2010 while the average was 64 percent among advanced economies
  • Australia is the largest provider of basic commodities needed to run the economies of China, India and Japan
  • Exports of coal, iron ore, gold, natural gas and other commodities grew in 2010-11 with 27 percent to 9 percent above the previous record in 2008-09
  • International energy companies have committed more than $100 billion to develop natural gas reserves and trapped stores of methane. Australia could surpass Qatar as the largest LNG exporter in the world by 2020
  • Iron ore exports may increase over the next six years by 7 percent per year