One of the reason i invest in US stock market is due to American depositary receipt (ADR), which is a stock that trades in the United States but represents a specified number of shares in a foreign corporation.
I would like to invest in emerging markets stocks, as i believe the emerging markets provide a better opportunities. However emerging markets economies having possibility of fall back due to not-completely-resolved civil war or a revolution sparking a change in government. Well, the higher the risk, the better the reward. With thorough study on a company, i believe the risk will be minimized till the level which is acceptable.
Advantages of investing in ADR not only provide you the easiest way to invest in emerging markets, also by having it listed in US stock market, the financial data and news will be more transparent with the control of Securities and Exchange Commission (SEC). As the control of the stock markets in emerging markets might be not really transparent, and it will harm the advantages of the share holders.
Emerging markets that i focus on will be Brazil and India which are from "BRIC nations" formed by Brazil, Russia, India & China. India is one my favorite as is the world 3rd largest economy, and is one the fastest growing country in Asia, it aims for economic growth of 9 percent to 9.5 percent through 2017. I like Brazil as its the world 8th largest economy with economy growth of 7.5% for year 2010, and it also has huge oil reserves and a fast-growing domestic market.
For those who interested in investing in ADR, you can actually find out more about ADR in www.adr.com.
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