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|Baskin Robbins||Allied Lyons|
|Burger King||Grand Metropolitan|
|French's Mustard||Reckitt & Colman|
|Glidden Paint||Imperial Chemical|
|Dunkin' Donuts||Allied Lyons|
|Purina Dog Chow||British Pete|
|Tetley Tea||Allied Lyons|
As you are probably well aware, a diversified portfolio gives you the opportunity to enhance your overall return while reducing risk. So it's only logical that going beyond your border to invest would produce the same results. Trends in foreign stock markets generally do not always correlate highly with bull or bear market cycles in the U.S. stock market. While one or more foreign stock markets may at any time be moving in the same direction as its U.S. counterpart, longer-term correlations are low. This means that diversifying beyond a single market, such as the U.S., should reduce the overall volatility of your stock portfolio over time. In addition equity markets in one or more foreign countries almost always outperform U.S. stocks each year.
Some American investors dismiss investments in overseas companies as risky, but they are living in yesterday's world. Many overseas investments are more conservative than their U.S. counterparts.
For example, Swiss drug stocks typically have a price-to- earnings ratio less than half that of U.S. companies. (Dividing a share's price by the company's earnings per share is a basic way to compare stock prices.)
Think of brand names known worldwide for investment potential. Companies such as Coca-Cola, Boeing, Disney, Ford, Citicorp, and Philip Morris are so multinational that they are not dependent on the U.S. economy, which is one of the things an investor would like to achieve.
A number of Canadian resource stocks are traded in the U.S. over-the-counter market, and on the Vancouver Stock Exchange. Most of these are highly speculative, but a certain small part of every portfolio should be devoted to speculation. For more information on techniques for making money in small speculative stocks, see Jim Straw's penny stock information.
Asset Strategies International of Rockville, Maryland, using the services of the venerable Delaware Charter Guarantee and Trust Company, can provide the required custody and accounting services. Delaware Charter was founded in 1899 and now manages over US$8.5 billion in trust assets, the largest of any non-deposit U.S. trust company. However, they will not offer their services directly, but only through intermediaries.
Michael Checkan and Glen Kirsch of Asset Strategies International provide a service in which they handle all the year-end currency conversion accounting required by IRS rules, and Delaware Charter compiles the annual reports to the IRS. They are well known in the financial newsletter industry and at one time or another have been recognized as a "recommended vendor" by many of the writers in the newsletter industry. The principals, Michael Checkan and Glen Kirsch have been in the foreign exchange business for a combined total of 50 years.
For further information write to:
For twenty years Adam Starchild has been writing books about these subjects, and they are published by a variety of publishers. They are available in many bookstores and public libraries.
For more information on global investing, see The Offshore Entrepreneur.
Copyright © 1995, 1997 by Adam Starchild
The Investor's Library has reprinted this copyrighted article with the permission of the author.