Investing outside the US

As regular readers know, I’m a big fan of looking outside the US. I’ve written about ETFs that track foreign indexes, and am still invested in one of them. EFA is a big gainer for me thanks to the declining US dollar.

However I have to consider getting out of EFA. Europe hates the dollar’s strength because it’s not good for their economies. The dollar may not reach it’s old levels anytime soon, but if it keeps falling many economies around the world (including in Europe) will suffer. Some like Korea are already suffering.

When it is time to get out of EFA, I’ll still be looking at foreign stocks. India and China are appealing, but there may still be some European companies worth looking at.

Seth Jayson over at Motley Fool has a broad stock screen and a few reulting s uggestions. This includes a poultry company in Brazil but as a vegetarian I’m not interested in researching that one. Then there’s De Rigo in Italy: “De Rigo is, simply put, a family-run eyeglass company with a market cap of $330 million and annual sales twice that.” De Rigo might be more fun researching as they have relationships with “Escada, Fendi, Givenchy, La Perla, and Italy’s oldest brand, Lozza.”

2 Responses to “Investing outside the US”

  1. Richard says:

    Hi,

    I believe also that it is time to get out of Europe stock market and for only one reason: $US vs. EUR. While the european stock market could have a positive performance for 2005, in case of a stronger $US, you will lose all gains and perhaps more. One possibility is offered to those investing directly in the stock market: Hedge!

    Regards

  2. TJ says:

    I’m quite bullish on Petroleo Brasileiro SA (PBR)… I don’t think the energy sector’s quite done yet, considering that next week’s weather forecast still creates spikes in todays crude prices.
    We’re one piece of bad news away from a $5 spike in the price, and with the geopolitical tensions in the middle east… the political and legal tensions in the former Soviet Union (Yukos… Ukraine’s presidency) … China’s rapidly growing economy… it all adds up to an inherent upside to oil.