Foreign Investment Part I (10/16/06)
I have done some homework on foreign investing and I will start by saying it was going against my grain to even think about it. I have come to the conclusion that if you do your homework like Jim Cramer says then you should do better than the professionals.
I do not have the time to learn about every country and every company in each country besides the information is not regulated like it is in the States. So how do you go about doing this investment in the other countries?
Continued.
First of all, you find a ETF that specializes in a country.
For example, EWJ is the iShares for Japan. This fund is run by professionals who specialize in that country.
You are paying a small premium for their knowledge, but that is well-spent for picking that country’s stocks.
They invest in many of the top companies in that country, a strategy similarr to you buying the Dow Jones Index, which represents the top (most established) 30 companies in America.
So you say, “what good does that do me?” Well, you have to accept the premise that the economic and political policies of each country change with time and you need to invest or sell according to those events.
Tomorrow, I will start to develop a case on how to go about investing by a couple of themes.
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