Where will investor find the next China or India, which have delivered enormous returns recently? One approach is to seek another large Asian nation.
The U.S. Census Bureau puts China and India far in front of anywhere else, with populations of 1.3 and 1.1 billion, respectively, while the U.S. is third, with 300 million. Included in the top 20 are six other Asian nations that have not attracted as much notice as China or India:
Country Population World Rank
Indonesia 235 million 4
Pakistan 165 million 6
Bangladesh 150 million 7
Philippines 91 million 12
Vietnam 85 million 13
Thailand 65 million 20
Altogether, these six countries have nearly 800 million people, which rivals China and India in size and diversity. However, some of these markets are difficult to access, all are pricier than they were in 2002, and there are specific risks for each country.
If you are willing to speculate with a small portion of your portfolio, alternatives include Indonesia Fund (AMEX: IF), Thai Fund (NYSE: TTF), and Thai Capital Fund (AMEX: TF). A somewhat less-risky strategy is to invest in a diversified regional fund.