International Diversification

If You’re Thinking About Global Diversification, You Should Read This

The developed world is depending, and will continue to depend, more and more on the developing world. The focus of productivity and GDP growth is in Asia. The U.S. is the only country with trade deficits since 1976. Introduction Nobody knows where the market will go in the next week, month, or year, but what… Read More »If You’re Thinking About Global Diversification, You Should Read This

The U.S. Dollar: Should You Stick To It Or Diversify Now?

The dollar has been positively correlated with stocks for the last 4 years which is unusual. Potential FED interest rate increases don’t make international diversification a great idea right now. Any sign of a U.S. recession should be a good time to think about international diversification with emerging markets. Introduction On big news sites like Bloomberg you… Read More »The U.S. Dollar: Should You Stick To It Or Diversify Now?

Emerging Markets Are Hot – Here Is Where You Should Put Your Money

Emerging markets are up 10% since our last article on the subject, but the FED’s rate action might quickly erase the gains. Valuations are starting to diverge, but don’t fight the trend. Keep an eye on China as it is relatively undervalued and still boosts economic growth of 6.7%. Introduction In May we discussed how… Read More »Emerging Markets Are Hot – Here Is Where You Should Put Your Money

Forget The News: If You’re Not Exposed to China, You Should Be. Find Out Why.

Don’t be scared by the news, China is growing strong and has incredible future prospects. Temporary bumps are and will continue to be normal. Portfolio diversification with China is essential for increased returns in the future. Introduction  Exactly a year ago fears around slower economic growth in China, the Yuan devaluation, and oil prices below… Read More »Forget The News: If You’re Not Exposed to China, You Should Be. Find Out Why.

Could It Be A Good Idea To Invest In Japan? There’s Upside Potential…

Price to book is 1.1 and price earnings ratio is at 15. More monetary and fiscal stimulus can be expected. Even if the economy doesn’t pick up Japan is relatively cheap. Introduction We read a lot about how Japan has been in an economic slump for the past 30 years, how incredibly large amounts of… Read More »Could It Be A Good Idea To Invest In Japan? There’s Upside Potential…

Investing Down Under

Australia has a stable and transparent economy, is rich in natural resources and the AUD currently looks cheap. The Australian stock index consists of mostly financials but all have excellent ratings. Only 0.09% of the S&P 500 revenues are generated in Australia therefore Australia provides additional international diversification. Introduction Australia is a country with a… Read More »Investing Down Under

On International Diversification

Markets are more correlated in the short term but strongly diverge in the long term. Currency movements further fuel international divergence. Being overweight a certain market or currency means carrying additional risks that could be removed by international diversification. Introduction One issue that is more often off than on investors’ minds is international diversification. Historically,… Read More »On International Diversification