Foreign Stock Investing For A Diversified Portfolio

By Riz Goodman

Foreign stock markets are now within your reach and the best thing is that there are several brokerage houses which now offer the facility of buying the stocks listed elsewhere. You need not do anything extra to buy these stocks apart from the extra research.

That said it used to be not so easy to buy shares of a non-US company but now that has become very simple and can be done with just a simple click. The first thing that you have to do is to check with your online brokerage house if they have the facility to trade in other countries stock exchanges. And also check if they will allow you to trade in the foreign stocks via your US dollar denominated account. Another option is to make sure that you invest in the ADR of the non-US companies listed. These ADR's reflect the underlying stocks as they are listed in the home stock exchange of the country.

Foreign stocks denominated mutual funds and the country specific mutual funds is another way to invest in the stocks of emerging market countries. The best part of the whole deal is that then you can avoid any foreign stocks analysis and any other regulatory challenges and hurdles.

Currency devaluations and exchange rate fluctuations are the main risks which can impact your foreign investments. You will need to closely monitor them. Do proper research before investing in the emerging market stocks. The foreign markets can be challenging and risky but the fact is that they also provide better returns

Research is the key here and that will mean accessing information about foreign companies. There are specific brokerage houses that provide research on foreign companies. You can do your own research by looking up for the foreign companies on the internet. Invest wisely and invest for the long term in these markets. - 23212

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The author writes about how to buy foreign stocks and also suggests top 10 stocks to buy