A good collective fund is the best place to start he says

“A good collective fund is the best place to start,” he says. He particularly likes the First State Global Emerging Markets Fund, which grew 9 per cent last year, or the First State Asia Pacific Fund, which grew by 22 per cent over the same period. Both funds have a long, decent track record.”Apart from Japan I wouldn’t go for a single-company fund,” adds Mr Yearsley. “Korea may have performed well but would you want to put all your money in the region into this one country? Japan, on the other hand, is such a large economy that if you wanted to invest there, you could risk opting for a Japan-only fund.”The only problem is that investors are even more reluctant to invest in Japan than they are in the rest of Asia. The country’s ’s stock market is a special case: it has gone against the tide of other Asian countries, dawdling at a record low.

But Mr Karagianis suggests opting for certain sectors, such as shares in automotive and technological companies which are listed in Tokyo but manufacture on the global stage. “Then, if there is a global upturn, these companies will benefit when the US economy rebounds.”If you do decide to invest in Asia, check your existing holdings first. Advisers recommend that no more than 5 to 10 per cent of your portfolio is in the region, and you may find you already have that.. There is no surer sign that consumer spending is getting out of control than the increasing number of people declaring themselves bankrupt.

MoneynetThere is no surer sign that consumer spending is getting out of control than the increasing number of people declaring themselves bankrupt.
The Department of Trade and Industry has revealed that there were 3,403 individual insolvencies – ie, not related to self-employment or business – in the third quarter of 2001. This was an increase of 16 per cent on the same period a year ago.And with UK consumer debt at £700bn and growing, it is no surprise that the Bank of England is concerned about the rise in borrowing.”A surge in consumer spending, fuelled by credit card borrowing, drove a sharp increase in individual insolvencies in 2001,” says Pat Boyden, business recovery services partner at Price- waterhouseCoopers. “While banks are increasingly reluctant to initiate formal bank-ruptcy procedures against the self-employed whose businesses have been hit by the economic slowdown, individuals who have incurred large personal debts struggle to keep their heads above water.”As interest rates reach a 40-year low, people are being encouraged to spend on credit in the belief that it will cost them less than in the past. “The current environment has seduced [consumers] into an unsustainable spending spree,” adds Ms Boyden.But not everyone agrees. Matthew Whittaker, a research analyst at the Credit Card Research Group (CCRG), argues that it is not growing debt but the fact less stigma is now attached to bankruptcy that is responsible for the increase in personal insolvency.

He points out that, last July, the Government introduced a White Paper suggesting ways of making bankruptcy less punitive.”The amount of credit on cards is growing but at a slower rate, suggesting it is reaching saturation point,” says Mr Whittaker. “Yet it seems that more people are choosing bankruptcy as an option, rather than that more people are getting into debt.”CCRG figures show that UK consumers owe £40bn on outstanding balances, on cards charging standard annual percentage rates (APRs) of between 8 and 22.4. Store cards offer an even worse deal, with average APRs of about 30.While bankruptcy isn’t something to be entered into lightly, Mr Whittaker believes that for some people it provides an escape route. “If you don’t have many assets, it is relatively painless,” he says. “However, people are better off trying to maintain a relationship with their creditor if they can, so their credit rating isn’t affected in future.”Bankruptcy can still be traumatic, particularly if you lose your home.