Foreign Stock Investing For A Diversified Portfolio
Foreign stock markets are now within your reach and the best thing is that there are several brokerage houses which now offer the facility of buying the stocks listed elsewhere. You need not do anything extra to buy these stocks apart from the extra research.
That said it used to be not so easy to buy shares of a non-US company but now that has become very simple and can be done with just a simple click. The first thing that you have to do is to check with your online brokerage house if they have the facility to trade in other countries stock exchanges. And also check if they will allow you to trade in the foreign stocks via your US dollar denominated account. Another option is to make sure that you invest in the ADR of the non-US companies listed. These ADR's reflect the underlying stocks as they are listed in the home stock exchange of the country.
The other option to buy foreign stocks is to go with the indirect route. That indirect route is via the mutual funds or the exchange traded funds. The mutual funds of the emerging markets are the best ones as it is the emerging markets that are supposed to the next drivers of the world economy.
Foreign stocks are a risky bet as there are a lot of variables which are there which you need to consider like currency and exchanges rate fluctuations. Do proper research before investing in the emerging market stocks. But as always high risk and high gain is the motto. Though on the other side always invest for long term.
Proper research and due diligence is the key here and that will mean digging more information about foreign companies. There are specific brokerage houses that provide research on foreign companies. You can do your own research by looking up for the foreign companies on the internet. Foreign markets are bound to provide better returns in the longer run. - 23199
That said it used to be not so easy to buy shares of a non-US company but now that has become very simple and can be done with just a simple click. The first thing that you have to do is to check with your online brokerage house if they have the facility to trade in other countries stock exchanges. And also check if they will allow you to trade in the foreign stocks via your US dollar denominated account. Another option is to make sure that you invest in the ADR of the non-US companies listed. These ADR's reflect the underlying stocks as they are listed in the home stock exchange of the country.
The other option to buy foreign stocks is to go with the indirect route. That indirect route is via the mutual funds or the exchange traded funds. The mutual funds of the emerging markets are the best ones as it is the emerging markets that are supposed to the next drivers of the world economy.
Foreign stocks are a risky bet as there are a lot of variables which are there which you need to consider like currency and exchanges rate fluctuations. Do proper research before investing in the emerging market stocks. But as always high risk and high gain is the motto. Though on the other side always invest for long term.
Proper research and due diligence is the key here and that will mean digging more information about foreign companies. There are specific brokerage houses that provide research on foreign companies. You can do your own research by looking up for the foreign companies on the internet. Foreign markets are bound to provide better returns in the longer run. - 23199
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The author gives information on how to buy foreign stocks and also writes about top 10 stocks to buy
posted by X - Men @ 6:21 AM
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