Offshore Investing
Offshore investing: spreading risk helps sleepThe world's economies still dance to different tunes and have different boom and bust cycles that tend to offset each other, even though the differences are getting smaller. As a result, international stocks can provide diversification for a portfolio heavy in U.S. stocks.Between June 1997 and October 1998, for example, Japan's Nikkei index lost almost 40%, but European markets did well due to continental economic union. U.S.-style corporate restructurings also began to pay off. One region's success balanced the other's failure to get its financial house in order.There has been less divergence between regions more recently.
Even so, we suggest the prudent investor cannot afford to ignore overseas markets. They now represent some 44% of world market capitalization, up from 25% about 30 years ago. International stocks can provide solid diversification for a portfolio heavily invested in U.S. equities.Exchange rates add an extra flavor to foreign investments. Fluctuations can add to or detract from profits or losses.
Institutional investors and others pay significant attention to this factor. When the U.S. dollar was appreciating against the Japanese yen, billions of dollars flowed out of that country and into U.S. stocks and bonds, worsening the economic crisis in Japan. That money started to flow back out when the currency valuation began to reverse.
Americans saw their investments in Japan appreciate then, even when the stocks remained in neutral.Funds that invest overseas fall into four basic categories: world, international, emerging market and country specific. Diversification is the key to containing risk. And, yes, a good fund manager helps, too. Research is scarce and foreign companies, other than some in Canada, are difficult for individual investors to track on their own.World funds are the most diverse of the four categories. They are, as the name suggests, able to invest anywhere in the world, including the U.S.
As a result, they don't offer as much diversification as a good international fund. Some have 60% or more of their holdings in the U.S.World funds tend to be the safest foreign stock investments, but only because they typically lean on better-known U.S. stocks. Just examine the portfolio carefully to make sure they don't mimic your U.S. holdings.
Funds invested in small- to medium-sized companies are unlikely to duplicate the foreign investment component of domestic funds.Foreign funds, on the other hand, invest mostly outside the U.S. Whether they are relatively safe or risky depends on the countries in which they invest.Advice: choose a fund with the best balance between countries and regions, or be very sure the manager has a good record of moving in and out of regions profitably.Country-specific funds invest in a single country or region. This type of concentration makes them particularly volatile ? especially those that invest in emerging markets. If you pick the right country at the right time, the returns can be substantial. Get it wrong and look for your head to be handed to you on a plate.
These funds are for the most sophisticate investors only.Emerging-markets funds are the most volatile, invested as they are in undeveloped regions subject to political upheaval, currency risk and corruption. These economies, such as Argentina's in 2002, can collapse; governments can fall or be overthrown. On the other hand, these regions have enormous growth potential. Adding a small sprinkling of emerging markets exposure to your portfolio could serve to lessen downturns in U.S. markets ? but they are for long-term investors only, those who can wait for fallen markets to recover.As always, of course, the biggest risks carry the greatest potential for outstanding rewards; you simply require nerves of steel.
The best course is to diversify well and sleep soundly at night..
Written & published by Murray Priestley, Managing Partner of Portofino Asset Management, private investment managers and publishers of the Portofino Report. http://www.portofinoasset.com/.Glide into Tax Season with Solid Financial Planning
(ARA) - With good planning, you can start the year off right by making sure you and your family are financially fit and ready for the new year, and possibly reduce your tax bill.
Here is a financial checklist to consider:Tap into the Power of Tax-DeferralIf you are thinking of investing in mutual funds for long-term or retirement savings, purchase a variable annuity.
You've got the 1099 forms for 2000 already from any mutual funds you own.
If you have a tax bill this year, you'll likely wait until April 15 to pay it, to give the money extra time to work for you.
What if you had the option to wait 10 or 20 years to pay?
That's tax-deferral.
You control when you pay taxes on your money so you can get the maximum mileage out of your investment earnings.Variable annuities provide tax-deferred investments -- you pay no taxes on the earnings until you actually withdraw the money, and you receive no tax assessment during the accumulation...
Glide into Tax Season with Solid Financial Planning
Hedge funds > Glide into Tax Season with Solid Financial Planning
PLUS Loans ? it's never too late to subsidize your
PLUS Loans ? it's never too late to subsidize your child's education costRising. Soaring. Skyrocketing. These are the words that seem to begin every article about college tuition costs ? and they are words guaranteed to make every parent cringe. According to the College Board, costs for the 2004-2005 school year at four-year private colleges are up 6%, while costs at four-year public colleges are up 10.5%.
Scary? Yes. Impossible to handle? No! The good news is that there is more financial aid available than ever before. One of the most interesting financial aid options is the Parent Loan for Undergraduate Students, or PLUS Loan. What is a PLUS Loan? PLUS Loans are federal loans taken out by parents to help pay their children's college costs. PLUS Loans offer several advantages: ? Interest rates are adjusted each year, but are consistently kept low.
For the 2004-2005 school year, the interest rate is 4.17%. It is capped to never exceed 9%. ? Financial need...
PLUS Loans ? it's never too late to subsidize your
Hedge funds > PLUS Loans ? it's never too late to subsidize your
ClassifiedBuyers.com Outsmarts Online Fraudsters, Solves 'Unsolvable' Problem of Internet Fraud
(ContentDesk) September 22, 2005 -- Last year, U.S. Government consumer agencies documented over one million cases of online fraud, totaling more than $100 million. Most experts agree that the actual number of fraud cases is significantly higher than the documented number because most users do not report online fraud.Thanks to one successful website, online fraud is no longer a "problem without a solution." ClassifiedBuyers' multiple levels of protection eliminate the belief that online fraud is an acceptable risk of shopping over the Internet. "Online fraud may be rampant on other classified and auction sites, but it's nonexistent on ClassifiedBuyers," said...
ClassifiedBuyers.com Outsmarts Online Fraudsters, Solves 'Unsolvable' Problem of Internet Fraud
Hedge funds > ClassifiedBuyers.com Outsmarts Online Fraudsters, Solves 'Unsolvable' Problem of Internet Fraud
PLUS Loans ? it's never too late to subsidize your
PLUS Loans ? it's never too late to subsidize your child's education costRising. Soaring. Skyrocketing. These are the words that seem to begin every article about college tuition costs ? and they are words guaranteed to make every parent cringe. According to the College Board, costs for the 2004-2005 school year at four-year private colleges are up 6%, while costs at four-year public colleges are up 10.5%.
Scary? Yes. Impossible to handle? No! The good news is that there is more financial aid available than ever before. One of the most interesting financial aid options is the Parent Loan for Undergraduate Students, or PLUS Loan. What is a PLUS Loan? PLUS Loans are federal loans taken out by parents to help pay their children's college costs. PLUS Loans offer several advantages: ? Interest rates are adjusted each year, but are consistently kept low.
For the 2004-2005 school year, the interest rate is 4.17%. It is capped to never exceed 9%. ? Financial need...
PLUS Loans ? it's never too late to subsidize your
Hedge funds > PLUS Loans ? it's never too late to subsidize your
Personal loans : Best answer to financial needs when facing multiple choices
A car, home, holiday to favourite destination?.- who doesn't want all that! Few years back it was not so easy to plan all that especially if you did not have the necessary funds. Now it is! Personal loans are making possible for everyone to borrow money for any kind of requirement. Personal loans literally mould themselves to reconcile with the financial needs of any borrower. "Personal loans" is the generic term for loans. Personal loans are in fact a lump sum which is borrowed from a bank or building society or any other lender.
Good personal loans are a rare breed. Like all better things in life it comes with tact, patience and consistent effort.
Personal loans market is huge and so competitive that everyone can now avail customized personal loans. Personal loans are considered to be both secured and unsecured; however, few lenders translate personal loans as unsecured loans. Major characteristic of unsecured personal loan is no collateral.
This...
Personal loans : Best answer to financial needs when facing multiple choices
Hedge funds > Personal loans : Best answer to financial needs when facing multiple choices
Want to Write a Book? Receive Coaching by Best-Selling Author
(ContentDesk) February 16, 2004 -- "As an author, one of my pleasures is remaining accessible to my readers," says Alten. "My personal e-mail appears in all of my books and I personally answer about a hundred letters a day. I'm always getting inquiries from individuals who want to write their own novel, but don't know how to get started, or find themselves stuck. Others have great ideas, but don't know how to develop their plots. So I offer two services on my website.
WRITING TIPS is a free site, which breaks the writing process down. WRITING COACH is a paid-for service for serious writers hoping to get published. I work directly with the individual, helping them develop and prepare their manuscript for a literary agent or publisher."Alten even offers reasonable monthly payment options, something that was not available for him when he got started. "There are never any guarantees, no matter who you work with. When I wrote MEG, I actually had to sell my prized possession, a 1971...
Want to Write a Book? Receive Coaching by Best-Selling Author
Hedge funds > Want to Write a Book? Receive Coaching by Best-Selling Author