2011 will hopefully go down as the year the United States finally tackles its imposing budget problems. The arguing has just begun, but by the end of the year, Washington will likely have agreed to some combination of deeper budget cuts and higher taxes. As I mentioned before, inaction is no longer an option. Yet in a number of other nations, inaction remains the norm. And because of the rising imbalance between taxing and spending, the International Monetary Fund (IMF) has come out… Read More

2011 will hopefully go down as the year the United States finally tackles its imposing budget problems. The arguing has just begun, but by the end of the year, Washington will likely have agreed to some combination of deeper budget cuts and higher taxes. As I mentioned before, inaction is no longer an option. Yet in a number of other nations, inaction remains the norm. And because of the rising imbalance between taxing and spending, the International Monetary Fund (IMF) has come out with a forecast of which countries may be in a deep hole by 2015 if they don’t act now. But first you should know that not all countries have similar bearings on your portfolio. Yes, the larger the economy, the greater the chance a train wreck will derail the global economy. But that’s not the whole picture. Economic size counts, but it’s really about the relative wealth of a country on a per-capita basis. Countries like India and Indonesia may be among the world’s 15 largest economies, but their citizens have… Read More

If you follow the foreign exchange markets, you are probably aware of the Canadian dollar’s rise against its U.S. counterpart. Canada’s currency has now eclipsed the value of the U.S. dollar — it now takes roughly $1.05 U.S. dollar to buy one Canadian “loonie.” The rising… Read More

As the past couple years have shown, U.S. equities are once again a prime source of attractive returns. But they’re not the only — or necessarily the best — source. Like many market watchers, I believe the highest long-term returns are to be had in developing countries… Read More

Did you know the United States withholds a portion of dividends paid to many foreign investors? This amount comes right off the top, before the payment even hits an investor’s account. Even after this cut, the foreign investor will still have to pay taxes on what’s left. But the United States isn’t just being greedy. Just about every nation does something similar. Switzerland withholds up to 35% of dividends paid to foreign investors… Israel withholds up to 25%… Canada takes 15% off the… Read More

Did you know the United States withholds a portion of dividends paid to many foreign investors? This amount comes right off the top, before the payment even hits an investor’s account. Even after this cut, the foreign investor will still have to pay taxes on what’s left. But the United States isn’t just being greedy. Just about every nation does something similar. Switzerland withholds up to 35% of dividends paid to foreign investors… Israel withholds up to 25%… Canada takes 15% off the top. Typically the higher yields found abroad can make up the difference. For instance, the high yields on foreign utilities can still make them worthwhile to most investors, even with the withholding. And truth be told, you can get this withheld money back. Investors filing for a foreign tax credit via IRS Form 1116 can reclaim foreign dividends withheld. But you won’t receive this cash until you file your tax return, sometimes up to a year after the… Read More

Back in August 2009, the International Monetary Fund (IMF) released a report stating that a global economic recovery had begun to finally take hold following the credit crisis. Since that time, global economies have continued to recover and stock markets across the world have… Read More

The current social unrest spreading throughout the Middle East has its roots in many causes. In some places, despotic leadership is no longer being tolerated. In other instances, such as Bahrain, religious groups that constitute a majority of the population have been shut out of important roles in the economy. Yet in all of the countries involved, one clear theme has emerged: The citizens are tired of corrupt, sclerotic and nepotistic leaders, and simply want improved access and a shot at a better lifestyle. What’s in the interests of these citizens is also in the… Read More

The current social unrest spreading throughout the Middle East has its roots in many causes. In some places, despotic leadership is no longer being tolerated. In other instances, such as Bahrain, religious groups that constitute a majority of the population have been shut out of important roles in the economy. Yet in all of the countries involved, one clear theme has emerged: The citizens are tired of corrupt, sclerotic and nepotistic leaders, and simply want improved access and a shot at a better lifestyle. What’s in the interests of these citizens is also in the interest of investors. Corruption-free, merit-based economies are always the best place to do business. That’s why the Heritage Foundation annually issues a Freedom Index of 10 components that measure a series of “economic freedoms” such as business freedom, trade freedom, fiscal freedom, property rights and corruption. It’s no coincidence that Iran, Syria, Algeria, Yemen, Tunisia and Morocco all occupy the bottom half of the Freedom Index rankings. Unless you are a member of the elite in these countries and have the ability to bribe and cajole your way into key business relationships, you… Read More

China’s GDP growth is projected by the Chinese Academy of Social Sciences to be 9.9% this year, making it by far the fastest-growing economy in the world. Although Chinese “A” shares, shares of mainland China-cased companies, are generally… Read More

Less than a year ago, China unveiled what it considered to be a younger and stronger statue of a bull to rival the one sitting on Wall Street in New York. The fact that it is also larger shows China’s ambition. With an… Read More

Back in November, I recommended three Brazilian stocks I thought were worth owning at the time. Since then, two of the three are outperforming the Brazilian market, with energy giant Petrobras (NYSE: PBR) up more than 20% to handily beat the iShares MSCI Brazil… Read More

In January, I declared that Japanese companies had the most undervalued stocks in the world. A calamitous magnitude 9.0 earthquake and subsequent tsunami have inflicted severe damage on the eastern part of the country, the most disastrous of which has been severe and potentially permanent damage to the Fukushima Daiichi… Read More