Investing in foreign stocks has become much easier and more popular with many investors. European, Asian and Latin American stocks have provided investors with more growth opportunities as compared to the American stocks in the last two decades.
The process of investing in international stocks has been made much easier with technological advances. Now there is an almost instantaneous flow of financial information around the globe in a matter of split seconds. Take a look at Twitter to see how fast news travels across the globe. This makes different financial markets across the globe somewhat correlated. The correlation of foreign markets with US markets has increased as comapred to the past. But still this correlation is low over a longer period of time.
There are several compelling reasons for investing in foreign stocks. So why you should consider adding foreign stocks to your portfolio as an investor? The most compelling reason is that foreign stocks have outperformed the US stocks for the last few years.There are always some equity markets that will outperform the US stocks in any one year.
Investing in foreign stocks also gives you the advantage of diversification to your portfolio. Economic cycles in different countries are different. If stocks in one country decline, there is a strong chance that stocks in another country will rise. Adding international stocks to your portfolio will diversify your portfolio. So adding foreign stocks to your portfolio hedges against the US stocks.
With the rise of ETFs (Exchange Traded Funds), you can easily invest in a basket of foreign stocks. These ETFs trade on US Stock Exchanges, so you don’t have to worry about investing in a foreign country. Stock picking is an art.
If you are really interested in mastering the art of investing to make a fortune than you should take a look at Chris Rowe’s Internal Strength Systems. Chris had used this exact investment system since leaving Wall Street to make a fortune trading stocks and options! Chris had stunned the trading community with his winning streak in 2005 when he did not even lose one single options trade in the whole year.