What are some good Cheap Foreign Stocks For Americans.
2007-03-25 12:18:56 · 5 answers · asked by dewreck2003 1 in Business & Finance ➔ Investing
Try ETFs that cover foriegn stocks instead. That way you can claim a tax deduction from your 1099 and not have to fill out foreign tax forms yourself.
2007-03-25 16:46:46 · answer #1 · answered by gregory_dittman 7 · 0⤊ 0⤋
With regards to the another post that says dont invest overseas because of interest rate risk, that is incorrect advice. Yes, f/x risk is just that-risk, but it can work in your favor as well. Especially in times like now when the dollar is getting weaker. A weak dollar means overseas gains are worth more when they are repatriated back into US dollars.
As far as "cheap" overseas stocks, I am not sure if you mean cheap in nominal terms or cheap in terms of valuation. A good starting point to investing overseas is to go to www.adr.com and familiarize yourself with some of the top foreign listed ADRs. (An ADR is a US listing of a foreign domiciled company.)
In any case, some quick ideas are Toyota Motors (TM) because Toyota is fast becoming the dominant car manufacturer in the world, an exchange traded fund called FXI which tracks the Chinese stock market, BHP Billiton (BHP), the world's largest mining company, Alcan (AL) a large Canadian aluminum producer, or possibly SAP, the German software company.
There are lots of great companies overseas and a smart investor should have international exposure. One thing I would stay away from is overseas oil companies like BP. The foreign oils seem to underperform their US peers by an extremely large margin.
2007-03-25 12:46:46 · answer #2 · answered by sothere! 3 · 0⤊ 0⤋
How about a stock with 3 billion potential customers? CDC an internet and software corp in Hong Kong... first thing people do when they get a new computer..play some games..CDC got 'em.
The stock took a dip two weeks ago with the whole Asian market...but coming back strong..$9.50 .. symbol:CHINA
Seriously!
2007-03-25 14:29:00 · answer #3 · answered by jebediabartlett 6 · 0⤊ 0⤋
Look in your own back yard - why risk foreign exchange fluctuations?
2007-03-25 12:28:36 · answer #4 · answered by smiling_freds_biz_info 6 · 0⤊ 0⤋
What do you mean by "Cheap"? Undervalued or low priced?
For low priced: Toshiba (OTC:TOSBF) around $6.35. Macquarie Infrastructure Group (OTC:MCQRF) at around $3.50 are two (not a recommendation, do your own research).
2007-03-25 12:50:44 · answer #5 · answered by gosh137 6 · 0⤊ 0⤋