How Much to Invest Abroad?

On 06/17/2013, in Asset Allocation, Equities, by Jordan Wilson

Individual investors may reap diversification benefits by investing internationally.

The level of benefit is based on many factors – cross-country correlations, major industries, domestic companies that operate globally, etc. Over time, global diversification benefits have fallen. However, investing outside your home country is still worthwhile.

The question then, how much should you invest abroad? 

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Argentina Economy

On 02/09/2013, in Economics, by Jordan Wilson

Zero Hedge has a nice summary of the economic problems in Argentina.

A fantastic country to visit, but over the years Argentina has often been an economic disaster.

A few things to focus on in the Zero Hedge post. 

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That is the view of one of my favourite investment commentators, Marc Faber.

Of course, Marc Faber is known as “Dr. Doom” so I expect a pessimistic stance from him.

Mr. Faber describes why investor wealth destruction may lie ahead. 

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(Lack of) Credit Ratings by Country

On 05/20/2011, in Economics, by Jordan Wilson

Countries continue to finance their activities through deficit spending, resulting in substantial accumulated debt.

This devalues the worth of a country.

As with individuals, high debt results in poor credit ratings as the risk of default increases. This can have a significantly negative effect on a country and its residents. 

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Systematic Risk

On 06/01/2010, in Investment Concepts, by Jordan Wilson

The complement of nonsystematic risk is systematic risk.

Systematic risks affect an entire market or a specific segment of that market.

Systematic risk factors are far reaching and impact all companies to some extent. These factors are not unique to the investment under consideration. They will harm a company regardless of how the company operates or manages its risks.

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