I found three articles that I thought were interesting.
The first one is on Yahoo from the LA Times about some of the exotic steps that some fund managers are taking to try to improve performance. The article gives some insight into what some folks are thinking they need to do. The article devotes some space to the PMFM family of funds that I have written about, negatively, once before.
The next one is from Forbes about foreign investing. It suggests several ways to capture the effect including owning US multi national companies. I still don't think this is a good way to capture foreign markets but there are studies that refute my opinion. If you think I am wrong on this I would encourage you to seek out commentary that really studies whether owning multi nationals for foreign exposure is a good idea and decide for yourself.
The last one is about a newsletter that focuses on closed end funds. It does not get too much into the process that the writer uses but there are some picks from last fall that I find interesting including Ireland which has been something I have been big on for a long time.
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1 comments:
Hi Roger - RE: Foreign Investing...
I disagree that buying individual ADR's isn't the best way to capture the potential for economic growth in foreign markets.
IMHO, I think it depends on the ADR's in which you've invested (i.e., Statoil, Nestle, ST Microelectronics, just to name a few). So long as the company's fundamentals underlying the ADR are sound, a broad diversified set of ADR's can give an investor a "flavor" for the growth potential in developed foreign markets.
I know you've suggested before that you're a "fan" of ETF's due to their low cost and their breadth of offerings as well as holdings.
I think ETF's are also a good way to capture value in foreign markets without as much of the market risk because you're essentially buying a market index fund that trades like a stock.
One thing that bothered me about the article, though, was Forbes' suggested weighting of 10%. No one should be suggesting a weighting that high in foreign shares or ADR's unless an investor is truly aware of and can handle the possible risk of loss due to currency fluctuations.
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