Why Investing in U.S. Multinationals is Not the Same as Investing in Foreign Companies

One way to invest in foreign markets is by simply buying stocks of U.S. multinationals. With these firms investors need not worry too much about lack  of transparency, governance, accounting issues, etc. as they follow U.S. laws and adhere to the standards common to businesses operating in the U.S. Hence by investing in these multinationals investors …

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Some Observations on The Periodic Table of Emerging Markets 2004-2013

The Callan Periodic Table of Investment Returns shows the annual returns for 20 years for many categories.It is a valuable tool to show the importance of diversification among asset classes. Similar to the Callan Table the following periodic table shows the annual returns for many single country emerging markets from 2004 thru 2013: Click to enlarge Source: US …

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A Brief Review of Trade Between US and Russia

The U.S.and other Western countries have imposed a wave of trade sanctions against Russia in the past few months. The goal of these sanctions is to weaken the Russian economy.However since Russia is very rich in all types of natural resources it remains to be seen if these sanctions have any impact in the coming …

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A Review of the Top Global Auto-Parts Makers

German auto-parts maker ZF Friedrichshafen AG announced a bid to acquire US-based TRW Automotive Holdings Corp. (TRW) in a deal worth $12.0 billion last month. However the deal is being held due to the German firm’s negotiations with Robert Bosch GmbH, Germany’s largest auto-parts manufacturer, to exit a joint venture according to a recent report by Bloomberg. The merger of ZF …

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Should You Invest In Korean Stocks Now?

In an earlier article on South Korea stocks I have suggested that investors avoid them. This month the South Korean government announced tax policies that may force companies to spend their cash piles. Some companies may decide to pay increase their dividend payouts as a result of this policy change. In addition the government announced a stimulus …

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