AboutPaul Henneman Expertise Stock forecasting and fair market valuations.
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Expert: Paul Henneman Date: 8/8/2007 Subject: stock exchange
Question With the USA seemingly struggling with all kinds of foreign tensions and economy concerns is it worth investing in non-USA stock markets such as the Toronto stock exchange or the London stock exchange instead US ones like the New York exchange or the Nasdaq?
Thanks for the advise!
Answer Steve,
Thank you for your question!
Yes, I believe that it is actually always good to have foreign investments, it increases diversity. One of the simplest ways to do this in regards to stocks, is to seek out ADR's. These are foreign companies that trade on US markets. This means that they can be bought and sold like a regular stock with a US trading account at any major online trading firm. For example, Fiat and Volkswagon are two foreign companies that trade on the US markets. There are probably a thousand or more companies that are readily accessible to you in this way. My research firm, www.ValuEngine.com, covers 719 of these ADR's from around the word: Asia, Europe, Middle East, and South America.
You could also look into the mutual funds and ETF's that focus on International markets.
That said, usually the best time to invest in the US market is just when things look pretty grim. That generally represents a buying opportunity at lower prices. Because of this I would not suggest eliminating US stocks from your portfolio altogether, but simple increasging the amount you have in foreign stocks when you think that there are better prospects internationally.
The Tokyo market has had a good year. But, the question of if that will continue is always a tough one.
I hope that this helps! Please do not hesitate to follow up with me if I can be of any additional service.
Best Regards,
Paul Henneman
President
ValuEngine, Inc
www.ValuEngine.com
