Money Talks: Investing in Foreign Stocks
Mon, 10 May 2010 09:48:55 GMT —
The American stock market is the world TMs largest. But it TMs not the world TMs only.
And experts have long said that investing in other countries can be smart.
History shows that you can decrease your risk and possibly make more money by spreading your wealth around to different stocks and bonds in different countries," said Charles Collver.
And recent history as shown that stocks in other countries, like China, India and Brazil, are doing a lot better than ours.
But how do you invest in the stocks in other countries?
It's not as hard as you might think. Several online brokerage firms let even the smallest buy a stock in another country almost as easily as they can buy one here.
The process is as simple as putting your American Dollars into an account, transferring it into the currency of your choice, then buying a stock on that country TMs exchange.
Of course, there TMs a difference between having the ability to send your money packing and it being a good idea.
There certainly is a chance to decrease your risk by even investing even in individual stocks overseas, but the risks are manifold and not always obvious to individual investors.
So before you send your money around the world in 80 trades, be careful. Making money in US markets is hard enough.
Doing it overseas is not going to make the process easier.