Good time to buy GM and Ford shares? 25-30 percent drop in recent days...? |
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Why index are more volatile then individual stocks? |
I'm not allow to write "index put" only "equity put".
It look to me that individual stock in more volatile.
Index reflect the average of the all market, so it shuld ... |
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The Federal Reserve pumped $41 billion today , how does this help the credit crisis? |
| The Federal Reserve pumped $41 billion into the U.S. financial system Thursday, the largest cash infusion since September 2001, I saw that head line today. Other than the mere fact that banks have ... |
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A goal for investing, how do I do it? |
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Recommendations for a stock charting website for USA listed stocks please? |
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I have $5k what should i invest it on ? |
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How do I read a company's financials information before buying shares? |
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I'm playing a stock market game at school?...? |
What are the top companies I can invest in. Please be professional about this, don't just say companies like Apple, or Microsoft. Plus, they need to be consistent, please help me. A... |
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Investing? |
| I just graduated from college, I have about $3,000 that I could use to invest. I've never done any investing. Can anybody please tell how I could invest so that I can generate a nice amount of ... |
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How to invest in share market? what does mean by face value of a share? |
| I want to invest in a share market. I am just a beginner. I would like to know more about the share market. Please tell me how to invest? where to buy the shares?... |
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TGC | Why do people include the stocks and bonds of foreign companies in their portfolio? |
Please give me as many reasons as possible to the previous question.
Would you recommend that these investments be made in foriegn currencies or should the currency risk be hedged? |
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Andy G
 |
International debt and equity is part of a diversified portfolio for a number of reasons.
First, to spread risk. If the US economy flattens out, other countries may not.
Second, to take advantage of international growth. As the largest economy on the planet, it's harder for big US companies to grow as fast as their counterparts in less developed markets. US companies already take advantage of the amazing infrastructure we have here. Imagine the growth spurt a telecom company in a 3rd world country would undergo as that country gets "wired up" (or as wireless tech gets better) and more of the population become potential customers
Third, I suppose currency diversification is important to some degree, but there are better ways to get it than foreign stocks and bonds
Fourth, higher returns on a lot of international debt than US debt
How's that -- for a start, at least. |
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OPM
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A lot of foreign investments are priced better than American firms. The American market is priced very high at this moment. Any sense of value as a discounting of cash flows implies that owners of the S&P 500 will see very little return for their money. This isn't true everywhere and so money flows overseas.
You should only hedge currency risk if it a material issue to your goals. Hedging must reduce return because you are insuring a segment of your portfolio.
There is an exception to this of course, and that is if you already receive foreign earned income. |
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Frank Castle
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I suggest foreign currencies (As long as those are British Pounds and Euros) |
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muncie birder
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In addition to the 1st responder who gave you an excellent and very comprehensive answer, many foreign areas are growing much more rapidly than the U S. China and India in particular. Does it not make some sense to take advantage of the opportunity to invest where there is better opportunities. |
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Man of La Mancha
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If you are really into "investing" and you have a large enough portfolio one of the things you want to have is diversity of your investment [not all your eggs in one basket]. An "investor" [again if you have a large portfolio] is actually spreading its risk by not having a concentration of investment in a particular company, industry or for that matter country. This requires a degree of sophistication and continue monitoring. One way of having this type of investment and at the same time having a lower risk is by buying into a mutual [or like] fund that carries in its portfolio investment in foreign companies....if you do that you would not have to hedge....It would seem that with so many industries, and excellent companies in the US any investment "overseas" must be carefully thought..... |
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MrZ
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Diversity. But I always buy mutual funds, not stocks, in foreign countries. |
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stock_trade_expert
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Hi, i know what your question means. i also think stock market is a nice place for investing.
I found some useful tips in stock trading. It includes stock basics, how to protect your profit, find a potential increase share, control and manage stock risk, when to sell/buy stock and so on.
http://www.bernanke.cn/stock-trade/
Best Wishes && Good Luck! |
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