The International Investor: 5 Benefits of Buying International Equities

You’re buying up companies in the U.S., but there’s a world outside of the country – you’ve just never been exposed to it. Should you? Many investors haven’t bothered with international equities. It’s not that they are unattractive. It’s that many investors just don’t know how to invest in foreign companies. But, there are many benefits to looking beyond your own back yard for good investment opportunities.

International Diversification

One of the most common arguments for investing abroad is international diversification. By getting out of the U.S., you’re not exposing yourself to the whole of the U.S. economy. Remember 2008? It was a terrible year for investors. Yet, countries like Canada didn’t have the same kind of downturn in the economy. Its banking system was more stable, banks weren’t making as many risky loans, and the types of loan programs just didn’t exist there.

Thus, Canada isn’t continually experiencing the same type of banking problems that the U.S. is. But, it’s not just banking. Some countries have good exchange rates that favor investing in that country – take the UK for example. The pound is worth more than the dollar – a good thing for investors in this country.

Some countries might also pose a lower political risk than the U.S. – especially in certain industries. For example, in the U.S. the FDA’s red tape prevents many biotechnology companies from developing innovative products. In Europe, the regulatory climate is different and it may be easier to invest in your chosen sector.

Opportunities

Review sites like BrokerStance.com are quick to recommend brokers that can help you find opportunities in foreign countries. In fact, this is the main reason many people jump the U.S. ship and start looking elsewhere – opportunity.

What kind of opportunity? International startup companies, companies that are entering industries that are impossible in the U.S. due to government regulation (or that are expensive). For example, the healthcare industry is tightly regulated, along with the financial industry. But, the construction industry is not far behind these two and biotech and telecom are hard to get into these days as well.

Not all countries have the same regulatory environment in these industries. For example, Hong Kong is the freest country in the world, economically speaking, followed by Singapore, Australia, and New Zealand. Investing in these countries might be easier and more profitable because of that.

The Perma-Bull Phenomenon

When you divest out of the U.S., you get to take advantage of bull markets in other countries. When your favorite industry isn’t performing well in the U.S., look for it in other countries. Sometimes, industries in one country experience a softening of the market. In other countries, they’re booming.

The U.S. Is A Smaller Share Of The Total Pie

Most people look at the U.S. as the largest and most profitable country in the world. But, the U.S. doesn’t have all of the money in the world. It does have the largest stock market, but that’s a title that’s slipping away. The U.S. only represents one-fourth of the total global economy. While it’s true that U.S. companies can have international operations, foreign companies themselves give you the opportunity to divest your portfolio out of the dollar.

That could be a good thing, depending on where you go. For example, the British pound is doing very well right now. Other currencies around the world are experiencing stability in the face of a dollar that struggles to succeed. For example, the Swiss Franc is doing quite well. Switzerland has a large, but stable, banking system. The Norwegian crown is another safe haven currency due largely to the fact that Norway has a lot of oil, a large trust fund, and no European Union membership. So, it’s essentially a sovereign nation.

The Singapore dollar is yet another safe currency. Singapore is not only a beautiful country, it’s the least corrupt one in the world. It’s also very friendly to banking and trading.

Finally, the Chilean peso is a good place to stash cash. This South American currency (actually the country) is far less corrupt than the U.S. It’s a commodity-driven economy and is better run than Australia. It also has a trust fund to guard against low commodity prices. So, stocks in this country should fare well, all things being equal (at least in terms of currency stability).

Jarryd Harden has had a long career in finance. He enjoys blogging about smart investing and wise money management.

269 Responses to The International Investor: 5 Benefits of Buying International Equities
  1. News
    April 20, 2018 | 7:09 am

    I really appreciate this post. I’ve been looking everywhere for this! Thank goodness I found it on Bing. You’ve made my day! Thx again!

  2. Health and Fitness
    April 20, 2018 | 7:15 am

    As soon as I observed this site I went on reddit to share some of the love with them.

  3. dewa poker
    April 20, 2018 | 7:29 am

    Hello there. I discovered your website via Google even as searching for a comparable matter, your web site came up. It appears to be great. I’ve bookmarked it in my google bookmarks to visit then.

  4. Health and Fitness
    April 20, 2018 | 8:11 am

    My brother suggested I might like this web site. He was entirely right. This post truly made my day. You can not imagine simply how much time I had spent for this information! Thanks!

  5. cara internet gratis
    April 20, 2018 | 9:10 am

    Hello there. I discovered your website by means of Google even as searching for a similar topic, your site got here up. It appears great. I have bookmarked it in my google bookmarks to come back then.

  6. Health and Fitness
    April 20, 2018 | 9:55 am

    Normally I don’t read article on blogs, but I wish to say that this write-up very pressured me to try and do it! Your writing taste has been amazed me. Thank you, very great article.

  7. Health and Fitness
    April 20, 2018 | 1:29 pm

    Thank you, I’ve recently been searching for info approximately this topic for a long time and yours is the greatest I’ve found out till now. However, what in regards to the conclusion? Are you positive about the source?

  8. Health and Fitness
    April 20, 2018 | 5:20 pm

    This is very interesting, You are a very skilled blogger. I’ve joined your feed and look forward to seeking more of your wonderful post. Also, I have shared your web site in my social networks!

  9. Health and Fitness
    April 20, 2018 | 6:24 pm

    I’m still learning from you, while I’m making my way to the top as well. I absolutely love reading everything that is written on your blog.Keep the posts coming. I enjoyed it!

  10. Health and Fitness
    April 20, 2018 | 6:26 pm

    Super-Duper website! I am loving it!! Will come back again. I am bookmarking your feeds also

  11. News
    April 20, 2018 | 6:46 pm

    Perfectly indited subject material , thanks for entropy.

  12. Jual Lantai Rumah Sakit
    April 20, 2018 | 9:11 pm

    Awesome write-up. I am a regular visitor of your blog and appreciate you taking the time to maintain the excellent site. I will be a frequent visitor for a really long time.

  13. Domino QQ
    April 20, 2018 | 9:50 pm

    Awesome post. I’m a regular visitor of your blog and appreciate you taking the time to maintain the excellent site. I’ll be a frequent visitor for a really long time.

  14. Daftar PokerPelangi
    April 20, 2018 | 10:34 pm

    Hello there. I discovered your blog by the use of Google at the same time as looking for a similar matter, your web site got here up. It appears to be good. I’ve bookmarked it in my google bookmarks to visit then.

  15. Agen Dominobet Online
    April 20, 2018 | 11:15 pm

    Hiya, I am really glad I’ve found this info. Nowadays bloggers publish just about gossip and internet stuff and this is really annoying. A good web site with exciting content, this is what I need. Thanks for making this web site, and I will be visiting again. Do you do newsletters by email?

  16. Daftar Imcpoker
    April 21, 2018 | 12:57 am

    Awesome write-up. I am a regular visitor of your website and appreciate you taking the time to maintain the nice site. I’ll be a regular visitor for a long time.

  17. Health and Fitness
    April 21, 2018 | 1:38 am

    Very interesting topic , regards for putting up. “We need not think alike to love alike.” by Francis David.

  18. Health and Fitness
    April 21, 2018 | 2:42 am

    Heya i am for the first time here. I found this board and I find It truly useful & it helped me out a lot. I hope to give something back and help others like you aided me.

  19. Qiu Qiu Online
    April 21, 2018 | 2:43 am

    Hi there. I discovered your website by means of Google at the same time as searching for a related matter, your web site got here up. It appears to be good. I’ve bookmarked it in my google bookmarks to visit then.

Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/the-international-investor-5-benefits-of-buying-international-equities/trackback/

The International Investor: 5 Benefits of Buying International Equities

You’re buying up companies in the U.S., but there’s a world outside of the country – you’ve just never been exposed to it. Should you? Many investors haven’t bothered with international equities. It’s not that they are unattractive. It’s that many investors just don’t know how to invest in foreign companies. But, there are many benefits to looking beyond your own back yard for good investment opportunities.

International Diversification

One of the most common arguments for investing abroad is international diversification. By getting out of the U.S., you’re not exposing yourself to the whole of the U.S. economy. Remember 2008? It was a terrible year for investors. Yet, countries like Canada didn’t have the same kind of downturn in the economy. Its banking system was more stable, banks weren’t making as many risky loans, and the types of loan programs just didn’t exist there.

Thus, Canada isn’t continually experiencing the same type of banking problems that the U.S. is. But, it’s not just banking. Some countries have good exchange rates that favor investing in that country – take the UK for example. The pound is worth more than the dollar – a good thing for investors in this country.

Some countries might also pose a lower political risk than the U.S. – especially in certain industries. For example, in the U.S. the FDA’s red tape prevents many biotechnology companies from developing innovative products. In Europe, the regulatory climate is different and it may be easier to invest in your chosen sector.

Opportunities

Review sites like BrokerStance.com are quick to recommend brokers that can help you find opportunities in foreign countries. In fact, this is the main reason many people jump the U.S. ship and start looking elsewhere – opportunity.

What kind of opportunity? International startup companies, companies that are entering industries that are impossible in the U.S. due to government regulation (or that are expensive). For example, the healthcare industry is tightly regulated, along with the financial industry. But, the construction industry is not far behind these two and biotech and telecom are hard to get into these days as well.

Not all countries have the same regulatory environment in these industries. For example, Hong Kong is the freest country in the world, economically speaking, followed by Singapore, Australia, and New Zealand. Investing in these countries might be easier and more profitable because of that.

The Perma-Bull Phenomenon

When you divest out of the U.S., you get to take advantage of bull markets in other countries. When your favorite industry isn’t performing well in the U.S., look for it in other countries. Sometimes, industries in one country experience a softening of the market. In other countries, they’re booming.

The U.S. Is A Smaller Share Of The Total Pie

Most people look at the U.S. as the largest and most profitable country in the world. But, the U.S. doesn’t have all of the money in the world. It does have the largest stock market, but that’s a title that’s slipping away. The U.S. only represents one-fourth of the total global economy. While it’s true that U.S. companies can have international operations, foreign companies themselves give you the opportunity to divest your portfolio out of the dollar.

That could be a good thing, depending on where you go. For example, the British pound is doing very well right now. Other currencies around the world are experiencing stability in the face of a dollar that struggles to succeed. For example, the Swiss Franc is doing quite well. Switzerland has a large, but stable, banking system. The Norwegian crown is another safe haven currency due largely to the fact that Norway has a lot of oil, a large trust fund, and no European Union membership. So, it’s essentially a sovereign nation.

The Singapore dollar is yet another safe currency. Singapore is not only a beautiful country, it’s the least corrupt one in the world. It’s also very friendly to banking and trading.

Finally, the Chilean peso is a good place to stash cash. This South American currency (actually the country) is far less corrupt than the U.S. It’s a commodity-driven economy and is better run than Australia. It also has a trust fund to guard against low commodity prices. So, stocks in this country should fare well, all things being equal (at least in terms of currency stability).

Jarryd Harden has had a long career in finance. He enjoys blogging about smart investing and wise money management.

269 Responses to The International Investor: 5 Benefits of Buying International Equities
  1. News
    April 20, 2018 | 7:09 am

    I really appreciate this post. I’ve been looking everywhere for this! Thank goodness I found it on Bing. You’ve made my day! Thx again!

  2. Health and Fitness
    April 20, 2018 | 7:15 am

    As soon as I observed this site I went on reddit to share some of the love with them.

  3. dewa poker
    April 20, 2018 | 7:29 am

    Hello there. I discovered your website via Google even as searching for a comparable matter, your web site came up. It appears to be great. I’ve bookmarked it in my google bookmarks to visit then.

  4. Health and Fitness
    April 20, 2018 | 8:11 am

    My brother suggested I might like this web site. He was entirely right. This post truly made my day. You can not imagine simply how much time I had spent for this information! Thanks!

  5. cara internet gratis
    April 20, 2018 | 9:10 am

    Hello there. I discovered your website by means of Google even as searching for a similar topic, your site got here up. It appears great. I have bookmarked it in my google bookmarks to come back then.

  6. Health and Fitness
    April 20, 2018 | 9:55 am

    Normally I don’t read article on blogs, but I wish to say that this write-up very pressured me to try and do it! Your writing taste has been amazed me. Thank you, very great article.

  7. Health and Fitness
    April 20, 2018 | 1:29 pm

    Thank you, I’ve recently been searching for info approximately this topic for a long time and yours is the greatest I’ve found out till now. However, what in regards to the conclusion? Are you positive about the source?

  8. Health and Fitness
    April 20, 2018 | 5:20 pm

    This is very interesting, You are a very skilled blogger. I’ve joined your feed and look forward to seeking more of your wonderful post. Also, I have shared your web site in my social networks!

  9. Health and Fitness
    April 20, 2018 | 6:24 pm

    I’m still learning from you, while I’m making my way to the top as well. I absolutely love reading everything that is written on your blog.Keep the posts coming. I enjoyed it!

  10. Health and Fitness
    April 20, 2018 | 6:26 pm

    Super-Duper website! I am loving it!! Will come back again. I am bookmarking your feeds also

  11. News
    April 20, 2018 | 6:46 pm

    Perfectly indited subject material , thanks for entropy.

  12. Jual Lantai Rumah Sakit
    April 20, 2018 | 9:11 pm

    Awesome write-up. I am a regular visitor of your blog and appreciate you taking the time to maintain the excellent site. I will be a frequent visitor for a really long time.

  13. Domino QQ
    April 20, 2018 | 9:50 pm

    Awesome post. I’m a regular visitor of your blog and appreciate you taking the time to maintain the excellent site. I’ll be a frequent visitor for a really long time.

  14. Daftar PokerPelangi
    April 20, 2018 | 10:34 pm

    Hello there. I discovered your blog by the use of Google at the same time as looking for a similar matter, your web site got here up. It appears to be good. I’ve bookmarked it in my google bookmarks to visit then.

  15. Agen Dominobet Online
    April 20, 2018 | 11:15 pm

    Hiya, I am really glad I’ve found this info. Nowadays bloggers publish just about gossip and internet stuff and this is really annoying. A good web site with exciting content, this is what I need. Thanks for making this web site, and I will be visiting again. Do you do newsletters by email?

  16. Daftar Imcpoker
    April 21, 2018 | 12:57 am

    Awesome write-up. I am a regular visitor of your website and appreciate you taking the time to maintain the nice site. I’ll be a regular visitor for a long time.

  17. Health and Fitness
    April 21, 2018 | 1:38 am

    Very interesting topic , regards for putting up. “We need not think alike to love alike.” by Francis David.

  18. Health and Fitness
    April 21, 2018 | 2:42 am

    Heya i am for the first time here. I found this board and I find It truly useful & it helped me out a lot. I hope to give something back and help others like you aided me.

  19. Qiu Qiu Online
    April 21, 2018 | 2:43 am

    Hi there. I discovered your website by means of Google at the same time as searching for a related matter, your web site got here up. It appears to be good. I’ve bookmarked it in my google bookmarks to visit then.

Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/the-international-investor-5-benefits-of-buying-international-equities/trackback/