Investors Look Abroad For Best Returns in 2007
February 26, 2007
A TD Ameritrade survey of 674 investors indicated that half of retail investors see the best returns in 2007 coming from markets outside of the United States, the company's Chief Executive Joe Moglia said during an interview with CNBC.
Moglia dismissed concerns that markets in China and India may soon implode. "There are going to be corrections in China," he said. "By the same token, if everybody just sold a couple of toothbrushes to everybody in China, you've got a reasonable growth business."
India, likewise, has been an area where some say investors hoping to win big fast might get burned. "They're places you want to be long term," Moglia said. "That doesn't mean there's not going to be any risk. But in terms of long-term growth prospects, I think you've got to be there."
Sixty percent of survey respondents-perhaps emboldened by a strong start to the year, tame inflation and reports of strong productivity-expect returns between 6% and 12%, he said. But respondents also felt far less confident in the consumer sector, perhaps driven by news in the automobile industry.
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