If you are an income investor, you may think overseas investing is best left to the pros. But you’d be wrong. A bit of research shows plenty of low-risk opportunities for U.S. investors seeking high yields in the global market. Investing globally is a good idea because it provides a chance to participate in the faster-growing economies of emerging markets like Brazil, which International Monetary Fund (IMF) forecasts will grow 4.5% this year – much faster than the U.S. growth rate of 3%. Looking abroad also provides more choices and the ability to… Read More
If you are an income investor, you may think overseas investing is best left to the pros. But you’d be wrong. A bit of research shows plenty of low-risk opportunities for U.S. investors seeking high yields in the global market. Investing globally is a good idea because it provides a chance to participate in the faster-growing economies of emerging markets like Brazil, which International Monetary Fund (IMF) forecasts will grow 4.5% this year – much faster than the U.S. growth rate of 3%. Looking abroad also provides more choices and the ability to diversify risk across multiple economies and geographies. #-ad_banner-#In addition, investing overseas often earns better returns. For example, the S&P gained 23.5% last year, but returns for emerging markets in Brazil, India and China were 80% or higher. The developed markets of Australia and Canada returned more than 30%. Foreign stocks also tend to have better yields because overseas companies typically distribute more of their cash flow back to investors. The yield on the S&P 500 currently averages less than 2%, but stocks in the developed markets of Europe and… Read More