Discuss the value of foreign stocks in an investment portfolio. Do you want them? If so, which ones? Do you diversify the classes as you would domestic stock? If so, what classes would you select? Are there any countries you would avoid? What about a stock index for foreign stocks—is this a good or a bad idea?© BrainMass Inc. brainmass.com October 10, 2019, 8:25 am ad1c9bdddf
Foreign stocks have great value in an investment portfolio. I want them. I can buy foreign stocks of industries that are more profitable abroad than those in the United States. Further, I would want stocks of countries whose currency is likely to appreciate against the dollar. When I sell off the stocks, I gain from the price appreciation of the stocks as well as from their increase in dollar value because of appreciation of the local currency.
Yes, I diversify the classes more as I have access to industries that I do not have in the home stock ...
The response provides you a structured explanation of foreign stock investment. The value of foreign stocks in an investment portfolio is provided. It also gives you the relevant references.