The following are some themes that help guide our decisions: • Identifying areas of the market that are over or under priced • Setting price levels for buying and selling stocks, bonds or cash • Weighing short - term versus long - term risk / reward • Determining how much should we be
invested in foreign stocks compared to domestic stocks
Intrepid International Fund will seek long - term capital appreciation
by investing in foreign stocks but it is, by prospectus, bound to invest only 40 % of its portfolio overseas.
Investing in foreign stocks offer many advantages such as a wide universe of stocks to choose, higher dividend yields in some markets, different earnings growth rates and potential high growth opportunities, etc..
Thinking now about foreign stocks and mutual funds, which invest in companies that are based in foreign countries, when
Americans invest in foreign stocks, do you think that is --[ROTATED: good for the U.S. economy, does not have much of an effect either way or is bad for the U.S. economy]?
A number of foreign companies offer DRIPs, providing U.S. citizens an easy and inexpensive way to
invest in foreign stocks.
What about index funds that
invest in foreign stocks?
Whenever
you invest in foreign stocks you're also potentially exposed to foreign currencies.
This applies to both foreign ETFs as well as Canadian ETFs that
invest in foreign stocks, as well as foreign stocks.
Investing in foreign stocks, though, can introduce new risks.
Discover ways to
invest in foreign stocks.
Canadian mutual funds that
invest in foreign stocks, ETFs that track foreign exchanges and American Depositary Receipts (ADRs) of foreign stocks that trade on U.S. markets all provide foreign investment options that could suffice for most investors.
As you ponder how much to
invest in foreign stocks, also think about how your investment assets match up with your future liabilities.
When
I invest in foreign stocks or bonds, the problem is unstable exchange rates (Euro & US Dollar) make such an investment a pretty risky thing, especially as the Swiss Franc is too stable, while the Euro is not.