As the trade war with China continues to simmer, a new law under consideration in Congress could reduce foreign capital flowing into China by way of investment in Chinese ADRs listed in US markets. The Kennedy Act which was passed by the Senate and is awaiting action in the House could put a crimp on investment going into China. It would require Chinese companies to provide the same level and quality of financial information to US investors as US companies and most other ADRs do.
Another brick in the trade war wall between the USA and China was laid last week when the White House suggested that Chinese stocks might be delisted from U.S. stock exchanges. Stocks fell briefly before a White House spokesperson denies the “rumor.” We have written for years about the risks of investing in China. A few years back we discussed the flight of capital from China. Wealthy Chinese were taking the money they made during China’s economic rise and using it to start businesses, buy property, and simply move their money out of China. […]
Bank stocks in the USA have been suspect ever since they led us into the financial crisis with their predatory lending practices. However, right next door in Canada, the banks have followed more conservative practices and several are ideal long term investment opportunities. A common practice, among Canadians, is investing in Canadian banks when their stock price falls, dividend percentage rises, and P/E ratio drops. The three Canadian banks we have in mind are these.
Toronto Dominion (TD)
Royal Bank of Canada (RY)
These are the three largest Canadian banks.
New banks are rare in Canada because the regulatory hurdles are so difficult […]
Not that long ago Brazil was touted as one of the BRICs nations. Along with Russia, India, and China and it seemed destined to join the ranks of the most developed and prosperous economies within just a decade or two. Brazil was considered a model for developing nations as employment soared, poverty was reduced, and safety net social programs helped stabilize their society. Then prices for oil and other commodities collapsed. Much of this had to do with China importing less as well. Nevertheless, Brazil was not equipped to moderate its social programs. And, on top of that, investigators uncovered […]
As the bull market in stocks ages, US investors are rolling over their investments from a focus on growth to a focus on value. They are also looking offshore for foreign investment opportunities. Some choose to combine the two approaches, but how do you find value investments offshore? CNBC reports that Morgan Stanley is looking offshore for value and where to put your money for the next year and they specifically suggest Brazil, Thailand, Indonesia, India, Peru, and Poland.
Underpinning the bank’s preference for stocks in emerging markets is an expected stabilization in growth in those economies in 2019, while expansion […]
The stock market keeps going up and many big name stocks seem overpriced. Are there any investment bargains these days in overlooked stocks, sectors or markets? USA Today writes about small cap stocks, their promise and their risks.
If you don’t currently have holdings in these stocks or related funds, it might be time to add some to your portfolio. Small caps can diversify portfolios and bring higher growth potential albeit with higher risks.
Because small cap stocks are often new companies with growth potential they may be investment bargains or they may be death traps because of their narrow focus. As […]
As populations grow in developing nations, infrastructure investment follows. This is especially true in parts of Africa. We wrote about the risks of foreign investment last week. What are the pros and cons of foreign investment in Africa? Wbug.com writes that booming populations are attracting lots of foreign investment.
Chinese President Xi Jinping is in the United States this week for his first face-to-face meeting with President Trump.
One thing that could come up during those meetings is foreign investment in Africa. The continent’s population is expected to double to 2.4 billion by 2050. Both China and the U.S. are investing heavily […]
In our last two articles we asked why aren’t you investing offshore and wondered about a coming European economic boom. But if you are thinking of putting your money to work outside of the USA, what are the unique risks associated with foreign investments and how can you avoid them? Investopedia writes about the three biggest risks that international investors face. These are transaction costs, currency risks and liquidity risks.
The Cost of Investing Offshore
Likely the biggest barriers to investing in international markets are the transaction costs. Although we live in a relatively globalized and connected world, transactions costs can still […]
The equity markets always look ahead and right now they are growing tired of waiting for the Trump boom and looking to Europe. According to CNBC Europe is the hot new trade in the stock market.
Amid the political uncertainty of Brexit, mounting social turmoil over immigration and barely there economic growth, Europe has improbably emerged as the hot stocks trade this year.
The postelection rally in U.S. equities is looking tired as gridlock has sapped momentum in Washington. Investors have been looking for a better place to grow cash, and the European market is quickly becoming the favorite target.
“We believe that […]
Over the last few decades China converted itself from an isolated state run economy into an economic powerhouse. Along the way many who were able to invest in Chinese companies did well. But the question for new investors is should I buy Chinese stocks today? A glance at an article in Bloomberg Markets indicates that this might not be the time while Chinese stocks fall their most in three weeks as traders bet on a weakening Yuan.
Chinese stocks dropped the most in three weeks, led by industrial companies and small-cap shares, amid concern that a weaker yuan will limit prospects […]