Diversification: Foreign Investments
One way you can add diversification to your investment portfolio is to add in some foreign investments. There are a great many opportunities out there, especially — as BloggingStocks reports — in emerging markets:
Emerging markets are up 20% in the last year while developed markets like the U.S. are flat. The reason to invest in these markets is not so much because the U.S. is going through a rough patch but more because these other markets are doing so much better and they are going to continue to do well regardless of what happens in the U.S. …
The best emerging markets performers over the last three years are in Russian commodity plays like Gazprom OAO (OTC: OGZPY) (Ruble) (+75%), Norilsk Nickel Mining & Metallurgical (OTC: NILSY) (+73%), and Lukoil Holdings (OTC: LUKOY) (+51%). Other international commodities companies like Companhia Vale do Rio Doce (NYSE: RIO) (+84.2%) and Reliance Industries (commodity chemicals) of India (+84.5%) are doing well.
The reason these stocks are doing well is that demand for commodities is very strong in China and India, which are both growing at 10% a year. These countries are buying raw materials to fuel their growth.
The important thing is not to make an investment portfolio decision based on what you think the US economy will do. After all, things may not be that bad. And domestic investments can be a good choice right now, since many stocks are priced low (value stocks may be an especially good idea at this time).
But even if the bulk of your investment portfolio remains firmly rooted in the US, it is still worth looking into foreign investments to add a little more diversification in areas that have high growth potential.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.
Tags: investment portfolio, foreign investments, investing blog, diversification,
emerging markets, investments, investment decisions
