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I am extremely excited to announce my new e-book, SOLID STOCK SELECTION is now available !! Click here to find out more.
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July 16, 2006 Investing Internationally Portfolio diversity means having a variety of assets in your investment account. Diversity helps to balance your account as often one type of investment may be ‘up’ while another is ‘down.’ In addition to that, more conservative investing is often recommended as we get older. I don’t want to get too deeply into the whole concept, as I have already written on this in a previous newsletter, but instead I want to discuss briefly international diversity. Another road to diversification is to invest in other countries. The easiest way to do that is to invest in a mutual fund specific to that country. Another option is to invest in a region, such as a European fund or a Pacific Basin Fund. This gives you diversity within your diversity. You may wonder why you would want to invest overseas (or North or South of your borders.) Is
this a betrayal of investing in your own country? Absolutely not. Most
businesses you invest in that are based in your own country are themselves
diversified. An example would be DaimlerChrysler. This merger of old and new
world automobile manufacturers is typical. The business includes European,
American, and Asian companies. They know, as should you, that a peak in one
economy is usually countered by a slump in another. The international aspect
can help keep gains consistent, rather than being tied to one country. Foreign investments do not have to be limited to funds. You can find foreign stocks traded on any exchange. Stocks and Funds are not the only options. Direct investment in land, businesses, vacation properties, etc, etc are all possibilities. One word of caution, the stability of a country or region can impact your investment. A government can seize or nationalize industries causing total loss on your part. This is becoming less common, but can still occur. Look into foreign investment; perhaps you will see something that appeals to you. Some of the fastest growing economies can offer extremely exciting investment opportunities, but they are not for the conservative or feint of heart. Always do your due diligence and good luck to all. Thank you, Rob
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Want a scholarship into the Millionaire Mind Intensive worth $2590? http://www.secretsofthemillionairemind.com The columns, articles, message board posts and/or any other features provided on Wealth Training Source are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author’s own and there is no implied endorsement by Robert Britt of any advice or trading strategy copyright Robert E. Britt 2006 |
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