Wednesday, October 21, 2009

Should You Invest Overseas?

There are always media discussions about investing at least some of your funds overseas. But nothing is definitive as to global diversification of investment funds.

Currencies are speculative and require special attention. They are probably not for the average investor.

Many large American companies are doing business overseas. So investing in the S&P 500 will give you a measure of global diversification.

If you do buy overseas investments to broaden this strategic step, there are emerging or developing, as well as developed countries in which to participate. Using indexed funds or exchange traded funds (ETFs), you can invest around the globe with varying regional emphasis.

Use indexed funds which are not hedged against currency value changes. This also helps diversify against inflation in the U.S. outracing that around the globe

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