Investing in Global Equities

Investing is no longer confined to domestic markets and people investors looking to take benefit of eye-catching opportunities have popularized international investing. In recent years, international investing has turn into both the norm and the requirement for a really diversified portfolio that can support decrease overall portfolio chance. An increasing quantity of individual and institutional investors have been escalating their world-wide markets exposure to pursue their investment objectives.

In the past numerous decades there has been a shift from investments in U.S. markets to foreign markets. In 1970, foreign markets represented 34% of the world’s investment opportunities and by 2008 foreign markets represented 56% of the world’s investment opportunities. It is estimated that by 2030, the U.S. market will only account for 25% of the world industry and investments in worldwide markets will improve significantly.

Diversification and Higher Returns The two main driving elements that can explain the shift towards worldwide investing are the investor’s quest for diversification, reduced chance, and greater returns. At first, when U.S. traders started opening up to foreign equities, it was largely to increase diversification in their portfolios. Since worldwide markets never always move in tandem with each other – some might go up although other individuals go down – worldwide diversification could probably offset the effects of a downturn in the U.S. market place. Needless to say, with the positive aspects traders are even now conscious that international diversification can deliver about added risks stemming from foreign nations this kind of as political conflicts, currency fluctuations, much less liquidity and so on. But regardless of these hazards, the possible for increased returns and lowered general portfolio danger tends to make foreign markets extremely appealing to investors.

As investors check out and pursue global investment opportunities, they find that the worldwide markets supply aggressive returns. Morgan Stanley’s Capital International’s Europe, Australia, Far East (EAFE) Index, which tracks the main globe markets posted 9.4% typical annualized return for the past a number of many years in comparison with the 11% average annual return of the S & P 500 Index.

The small variation in returns can be attributed to several financial and market place factors in countries around the globe. But as a diversified bunch, the all round risk of any individual global marketplace is reduced. For instance, during the 1990s, the Japanese industry seasoned a marketplace recession. Subsequently, Japanese stocks grew to become heavily undervalued, supplying investors with desirable options. Several years immediately after, the Japanese marketplace bounced back creating gains north of 60%.

How to Invest in Foreign Equities One particular way to boost international exposure into your portfolio can involve just a plain investment in an U.S. organization that will get most of their income from foreign markets. In reality, most of the companies on the S & P 500 Index derive most of their revenues from overseas operations.

3 Responses to “Investing in Global Equities”

  1. Claudio 16 June 2013 at 4:19 am Permalink

    This is an excerpt from Lucent Technologies’ Management?

    Executive Summary

    We design and provide the systems, software

    and services that drive next-generation communications

    systems. Backed by Bell Labs

    research and development, we use our

    talents in mobility, optical, access, data and

    voice networking technologies, in addition to

    services, to produce new revenue-producing

    possibilities for the clients, while

    enabling these to rapidly deploy and

    manage their systems. Our subscriber base

    includes communications service companies,

    government authorities and businesses worldwide.

    We’ve three segments organized

    round the items and services we sell.

    The reportable segments are Integrated Network

    Solutions (“INS”), Mobility Solutions

    (“Mobility”) and Lucent Worldwide Services

    (“Services”). Inches supplies a wide range

    of software and wireline equipment related

    to voice networking (mainly composed

    of switching items, which we very often

    describe as convergence solutions, and voice

    texting items), data and network

    management (mainly composed of access

    and related data networking equipment

    and operating support software) and optical

    networking. Mobility provides software and

    wireless equipment to aid radio access

    and core systems. Services provides deployment,

    maintenance, professional and handled

    services meant for both our product

    choices in addition to multi-vendor systems.

    Starting in fiscal 2001, the worldwide

    telecommunications market deteriorated,

    caused by home loan business the competitive

    local exchange company market along with a significant

    decrease in capital investing by established

    service companies.This trend intensified

    throughout fiscal 2002 and ongoing into fiscal

    2003. Causes of the marketplace degeneration

    incorporated general economic downturn, network

    overcapacity, customer bankruptcy,

    network build-out delays and limited availability

    of capital.

    We feel that the marketplace for telecommunications

    equipment has stable

    and it is beginning to develop in a few areas. The

    growing demands of businesses and customers

    for further services customized to

    their demands is creating the requirement for a brand new

    convergence of systems, technologies and



    1. While using Consolidated Balance

    Sheets for Lucent Technologies for

    September 30, 2004 and 2003, prepare

    a typical-size balance sheet.

    2. Assess the resource, debt, and equity

    structure of Lucent Technologies, as

    along with trends and changes available on

    the most popular-size balance sheet.

    3. What concerns would traders and

    creditors have according to only this


    4. What additional financial and nonfinancial

    information would traders

    and creditors desire to make trading

    and lending choices for Lucent




    (in Millions, Except per Share Amounts)

    September 30, September 30,

    2004 2003


    Cash and funds counterparts Three Dollars,379 Three Dollars,821

    Marketable investments 858 686

    Receivables 1,359 1,511

    Inventories 822 632

    Other current assets 1,813 1,213

    Total current assets 8,231 7,863

    Marketable investments 636 —

    Property, plant, and equipment, internet 1,376 1,593

    Prepaid pension costs 5,358 4,659

    Goodwill along with other acquired intangibles, internet 434 188

    Other assets 928 1,608

    Total assets $ 16,963 Fifteen Dollars,911


    Accounts due $ 872 One Dollar,072

    Payroll and benefit-related liabilities 1,232 1,080

    Debt ageing within twelve months 1 389

    Other current liabilities 2,361 2,393

    Total current liabilities 4,466 4,934

    Postretirement and postemployment benefit liabilities 4,881 4,669

    Pension liabilities 1,874 2,494

    Lengthy-term debt 4,837 4,439

    Liability to subsidiary trust giving preferred investments 1,152 1,152

    Other liabilities 1,132 1,594

    Total liabilities 18,342 19,282

    Obligations and contingencies

    8.00% redeemable convertible preferred stock — 868

    Shareowners’ Deficit

    Preferred stock—par value $1.00 per share approved shares:

    250 released and outstanding: none — —

    Common stock—par value $.01 per shareAuthorized shares:

    10,000 4,396 released and 4,395 outstanding shares by

    September 30, 2004,and 4,170 released and 4,169

    outstanding shares by September 30, 2003 44 42

    Additional compensated-in capital 23,005 22,252

    Gathered deficit (20,793) (22,795)

    Gathered other comprehensive loss (3,635) (3,738)

    Total shareowners’ deficit (1,379) (4,239)

    Total liabilities, redeemable convertible preferred stock

    and shareowners’ deficit $ 16,963 $ 15911

    * 30 days ago

  2. Jae 2 July 2013 at 10:30 pm Permalink

    Its okay my grandmother died and left us a share of her money!

  3. Josette 5 July 2013 at 10:13 am Permalink

    Considering trading right into a couple of companies ive been following and wanted a couple of opinions on which those who have this expertise, would do.

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