10. When Is It Safe to Drink the Water? International Investing
Investing abroad has become popular in recent years because foreign stock markets have in many cases been stronger than our own. This has especially been the case when our own currency has been weak, as it has been from 2003 to 2008.
A certain inherent logic is involved in looking abroad for investments rather than limiting yourself to just the United States. The more choices available to you, the better results you can obtain.
However, investing abroad also has inherent obstacles. Currency risk is added onto whatever local stock market risk exists. This currency risk has no offsetting expectation of reward. Currencies have gone up and down, often without establishing a trend even ...
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