Am I the only one who just noticed that it’s Wednesday? The holiday week with the free day is completely screwing me up.
Just to make this a relevant post:
Spend less!
Save more!
Invest!
Wee!
7 Benefits of Investing Internationally
When it comes to financial investments, it’s always better to go with an informed decision than one that relies merely on chance – besides, gambling only works when luck’s on your side. Fortunately, international investments are a financially secure and reliable form of investing as long as you know your limitations. So, in keeping with the idea of sound financial decisions, here are seven benefits of investing internationally:
Diversification of Your Funds
A diversified financial portfolio gives investors options in terms of economic fluctuations and, by investing internationally, your finances will have alternative sources of stability. In other words, if your money is spread out among various countries, then an economic crash in one country won’t affect other investments.
It goes without saying that with diversification also comes a learned understanding of various global economies and markets, but with the help of a financial adviser or with a little research, you’ll have the ability to make informed global investments, which is always better than the “eggs in one basket” approach.
Investing Abroad Means More Options
Just like there’s diversification with investing internationally, there are also many options when it comes to the way you want to invest your finances. And, with international investing growing in popularity, the investment options available in today’s market are quickly becoming commonplace.
Three of the most popular forms of international investments are mutual funds, exchange traded funds (ETFs), and American depository receipts (ADRs). And, although mutual funds are a common form of investment, ETFs and ADRs trade much like stocks and therefore take a little more financial knowledge to navigate.
International Protection and Confidentiality
If you’re the type of investor that’s worried about financial scares associated with foreclosures and lawsuits, investing internationally has an added advantage of asset protection. With investing abroad, many foreign financial institutions are able to protect your investments from seizure and other threats.
Likewise, investing internationally also comes with confidentiality concerning your finances. International financial institutions are not legally required to divulge your monetary details to anyone. Confidentiality isn’t to say that international investments are exempt from legalities, but they’re entitled to more freedoms.
Investment Growth on an International Level
In terms of household incomes, import/export strengths, younger working populations, and the lean toward free-market economic policies, investing internationally has the potential for more growth than investing in the United States alone, which translates to an increase in return potential in overseas investments.
In fact, according to the International Monetary Fund, the United States is expected to fall below the rest of the world for the next two years when it comes to economic growth. Because of this, companies like Fisher Investments Institutional Group are strategizing toward international investments in strong economic climates across the world.
Currency Diversification Strengthens Portfolios
Much like international investing gives your portfolio safety in numbers as opposed to having all assets invested in one country’s economy, so do currency differences from country to country. In relation to the US dollar, many countries across the world have stronger currencies, which helps boost returns over time.
The flip side of this coin is the idea that fluctuations in currency strengths can just as easily work against your portfolio as they can strengthen it. It’s wise to keep an eye on international currency rates and how they compare to the US dollar, but never invest solely based on rates as a country’s currency can drop in strength overnight.
A Reduction in Taxes
Otherwise known as tax havens, many countries across the world offer attractive tax incentives to foreign investors. These incentives are meant to strengthen other country’s investing environments as well as attract outside wealth.
These tax incentives are particularly attractive to US investors due to the increasingly high taxes in the country. As a result, the United States government is creating more defined restrictions and laws when it comes to international investment tax incentive regulations.
Investment Potential in the United States is Dwindling
Because the United States has both the world’s largest economy and stock market, financial opportunities are almost maxed out due to over-investing. On the other hand, emerging markets in other countries are growing in size and strength, which is quickly resulting in stronger economies and more investment opportunities.
By ignoring the potential of other world markets, you’re also ignoring global economies and stock markets that offer unforeseen investment potential when compared to the United States, which is something every investor should keep in mind.
So, from portfolio diversification to investment growth, investing internationally is a great way to expand your financial horizons.
This is a guest post.
Twitter Weekly Updates for 2010-06-05
- Working on my day off and watching Teenage Mutant Ninja Turtles. #
- Sushi-coma time. #
- To all the vets who have given their lives to make our way of life possible: Thank you. #
- RT @jeffrosecfp: While you're grilling out tomorrow, REMEMBER what the day is really for http://bit.ly/abE4ms #neverforget #
- Once again, taps and guns keep me from staying dry-eyed. #
- RT @bargainr: Live in an urban area & still use a Back Porch Compost Tumbler to fertilize your garden (via @diyNatural) http://bit.ly/9sQFCC #
- RT @Matt_SF: RT @thegoodhuman President Obama quietly lifted a brief ban on drilling in shallow water last week. http://bit.ly/caDELy #
- Thundercats is coming back! #
- In real life, vampires only sparkle when they are on fire. -Larry Correia #
- Wife found a kitten abandoned in a taped-shut box. Welcome Cat #5 #
Disclosure
I’m not terribly commercial, but I do enjoy making money.
As such, it is safe to assume that any company, entity, corporation, person, place, thing, or other that has a product, service, post, or link has in some way compensated me for said product, service, post or link. That compensation–direct or indirect–may be in the form of money, swag, free trips, gold bullion, smurf collectibles, super-models, or just warm-fuzzies. That list is NOT in order of preferred method of compensation.
To reiterate: If it’s commercial, and it’s here, I’m probably being paid for it.
Charlie Hunnam and the Success of 50 Shades of Grey
It looks like actor Charlie Hunnam is all set to cash in on the biggest romance novel of the decade. He is set to play the lead role of Christian Grey in the film adaptation of the salacious hit novel 50 Shades of Grey directed by Sam Taylor-Johnson.
Charlie Hunnam, with his English good looks and charm, will definitely make the fantasies of so many women into a reality. Born in Newcastle-upon-Tyne in 1980, Hunnam is already well known in the UK for his portrayal of Nathan Maloney in the television show Queer as Folk. He is also fresh off his recent role in the summer blockbuster Pacific Rim. Now, he will delve into the alternative, sexy, and edgy role of Christian Grey, the hero of the novels written by E.L. James.
With 70 million copies of the BDSM-themed trilogy sold around the world, even the novels themselves are a runaway success. Hunnam himself stands to make quite a bit of money off the film adaptation. If the initial film is a success on the level of Twilight, then Hunnam could easily become an A-list actor in Hollywood, which would boost the amount of money he earns per film. If the novels continue to be adapted into films, then he will be set for at least another few years. Who wouldn’t feel comfortable knowing they were starring in a saucy summer film that would be a guaranteed blockbuster? However, Hunnam didn’t jump straight away to become Christian Grey – he turned down the role at first, but then reconsidered it later. If the buzz surrounding the film means anything, then it’s a good thing that Hunnam changed his mind!
Production work on the film will begin in October 2013, and a release date has been scheduled for August 1st, 2014. With the recent announcement of the lead actors, the excitement is building, and it doesn’t seem like it will die down any time soon. It looks as if 50 Shades of Grey will be a wise career move for Charlie Hunnam as a well as a great way to boost his annual salary.
Top 7 Reasons To Trade Forex Over Other Financial Instruments
This is a guest post provided by ForexTraders.com
The foreign exchange market has literally exploded over the last 10 years. Before the 1990’s, the only players allowed to speculate in the forex market were banks, large hedge funds, and very wealthy individuals. The reason was simple. The minimum contract size was usually $100,000 and it ranged up to $1,000,000; therefore, most traders simply could not afford to trade in the market. The advance of technology and internet changed that. Today, traders can open an account with as little as $100 and begin trading in the spot fx market. This change has caused traders around the world to rush into the market and the Bank of International Settlements now estimates that average daily turnover in the fx market is around $4 trillion! Let’s examine a few of the top reasons why the fx market is drawing so many traders.
Leverage
In the United States, traders that engage in fx trading can leverage 50:1. Leverage was much higher in recent years, but government regulations have now capped leverage at 50:1 effective late October. This means that a forex trader can control a position of $50,000 with only $1,000 on deposit with his broker. Leverage is definitely a two-edged sword that can help a trader garner very quick and substantial profits, but it can also lead to debilitating losses and should therefore be used with caution.
Liquidity
The huge amount of volume that is present in the forex market each day makes it basically impossible for any single financial institution or even group of market participants to manipulate price movements. It also makes it much easier for large traders to enter and exit the market without trading against themselves, which is a common problem in the stock and commodity markets.
24 Hour Market
The forex market is a loosely connected network of international banks; therefore, the market never closes from Sunday evening until Friday afternoon. Liquidity simply flows from financial center to financial center as time zones open and close business operations for the day. This is a huge advantage for small, retail traders because those who still have full-time jobs can trade at night.
Small Initial Account Size
Traders can open accounts with as little as $1 at some brokers, and then trade positions where each 1 point movement is equivalent to $0.01 (in the U.S. this would be lower since the leverages are capped at 1:50). This will obviously never get a trader rich, but it does allow traders a very low risk entrance into the market. Traders generally need $20,000 in order to day trade the stock market. This very low account size at an online forex broker is a big draw for many traders.
Long Trends
The currency market tends to develop very clear, long trends. It is not uncommon for specific currencies to head in the same direction for 5+ years. Of course, there are many dramatic price swings that make real-time trading difficult and challenging, but a quick look at longer-term currency price charts makes it clear that currencies develop strong trends.
Macro Economics
The currency market is very big picture-based. This means there are not a million and one little things that a trader has to track as is common in other financial markets. Currencies react to major macroeconomic developments around the world. Seasoned fx professionals argue that this makes the job of economic analysis much different in the currency market.
Continued Growth and Volatility
The foreign exchange market is expected to continue to grow in coming years, and volatility is expected to remain quite strong as the world continues to move toward a more globalized economy. As globalization continues to change the world economy, investor interest in currencies will most likely continue to grow steadily.
Jason’s commentary: I’ve never looked into forex trading, mostly because I’m not in the “invest & grow rich” stage of my financial life. Have you invested in the forex market?
