When it comes to investing globally especially over the lst few years. The world has become far more flat in terms of trade than any time in history.
New opportunities may require broader thinking on a much more in order to achieve your personal investing goals.
In my home country (UK) our stock market the FTSE 100 is grossly overvalued in comparison to prior times throughout the markets history. Nowadays, there has been dwindling opportunities for investors to seek value investments involving purchasing a company for less than it's net worth. Therefore investors such as my self have now had to look abroad in the global market for investment opportunities that are not available to us within my home country.
It is not illegal to invest within companies abroad. However, there are different tax treatments for each of the different countries. For example buying US stocks within a pension plan allows for the gains to be tax free. Please do speak with a qualified tax attorney for information before investing.
Here are my top tips for investing globally to reduce your risk.
1. Trennd - The trend is you're friend. Never bet against a fundamental trend as you will lose 100% of the time. Instead embrace what is instead of what you would like to be. This ensures you keep loses to a minimal whilst maximising your gains and rewards.
2. Don't overpay - Never overpay for anything. As much this principle is very straight forward. You'll be surprised y the number of people who boy and hold very bubbilcious companies at the height of the marketing buying XYZ company for 100+ times earnings. Like BP, like Netflix and any other company trading at absurd valuations. Buy companies for less than their intrinsic value by calculating the book value of the company. This is one of many metrics to ensure that you're getting pennies on the dollar.
3. Cash flow - A company with a growing cash flow shows that it is growing it's earnings. A company with a high and growing free cash flow highlights the company growing treasury of money to able to be given out in the form of dividend payments or reinvestment in the business itself'. This is one of many metrics to allow you to pick an investment that is right for you.
4. High amounts of debt - Never ever invest within a company is excessive amounts of debt. Also become aware of the types of debt (whether variable or fixed) the company has upon it's books as the Federal Reserve is in a tightening cycle which can affect the company's repayment ability. Not all debts are are created equal therefore do conduct your due dilligence before putting your money where your mouth is.
These are just a bunch of different metrics helping to ensure even the most novice investor has a basic understanding on the way to success and riches.
if you enjoyed what you read today.....
(
To follow and resteem if you feel this post was beneficial to you!!
Happy Steeming