iShares MSCI Australia Index Fund (ETF) (EWA)

RafesUserName (< 20) Submitted: 11/04/06 6:25 AM : Start Price: $21.73 EWA Score: -2.93

After living in Australia for nearly 4 years, I feel I understand much of what drives their economy. Even so, I don't want to invest in individual companies as I'm now moving back to the US and I don't feel I can track them as well once I do. So instead, I invested in EWA. Here is why...

1) At a time when the US economy is slowing, Australia is going the opposite way. This has two advantages. First the value of the dollar is weaker against the AUD which is at it's highest in years (I'm glad I still have my retirement fund over there making over 10% in an ING fund - my best option). Second, this should allow EWA to beat the S&P500 quite well.

2) Australia's mining industry is booming because of demand from China for steal, sand and other medals. I expect this to continue. This also makes EWA a China play as well. I believe BHP just recorded one of the biggest profit numbers in history.

3) There is a major movement backing deregulation of the media. When this goes through, some of the major companies held by EWA will see many an opportunity open up.

There is more, but these are the major points worth mentioning.

- Rafe

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