One of the best ways to invest in foreign markets is through American Depository Receipts ADRs. ADRs provide convenience in terms of trading and reporting of those trades to the IRS. The transaction costs are also much lower than they’d be when buying through local exchanges. You don’t have to worry about the huge spread most banks charge when converting U.S. dollars to the stocks’ local currency. These benefits are visible when trading in emerging markets’ stocks.
Insider Monkey likes investing in emerging markets for three reasons. First, they are usually cheaper than are U.S. stocks based on current P/E ratios. Second, their GDPs grow faster. Third, their currencies are usually undervalued, and they will eventually catch up with the U.S. dollar. For short term investors, emerging markets may be very volatile and losses will be exaggerated during market declines. However, long term investors with diversified portfolios can protect themselves from dollar inflation and benefit from emerging markets’ higher growth rates.
Source: Wall St Cheat Sheet
Related Articles:
Dividend Stocks With Profitable Returns
Posted by D4L | Saturday, February 19, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.