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INT.TXT
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1994-10-15
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International Investing Provides More Investment Choices
If you invest exclusively in the U.S. market, you
miss the opportunity to share in the potential growth
of some of the leading companies in the world. Scan
the list of products below, and you'll see many
manufactured by non-U.S. companies that are "household
names" in America.
Aquafresh Beecham
Baskin Robbins Allied Lyons
Burger King Grand Metropolitan
Carnation Nestle
Close-Up Unilever
Dannon Yogurt BSN
Dewars Guinness
French's Mustard Reckitt & Colman
Frigidaire Electrolux
Glidden Paint Imperial Chemical
Holiday Inn Bass
Lean Cuisine Nestle
Dunkin' Donuts Allied Lyons
Lucky Strike BAT
Mighty Dog Nestle
Panasonic Matsushita
Pillsbury Grand Metropolitan
Purina Dog Chow British Pete
Q-Tips Unilever
Ragu Unilever
Sudafed Wellcome
Sunkist Cadbury Schweppes
Tetley Tea Allied Lyons
Travelodge Trusthouse Forte
T.V. Guide Newscorp
Valium Hoffmann-La Roche
As you are probably well aware, a diversified
portfolio gives you the opportunity to enhance your
overall return while reducing risk. So it's only
logical that going beyond your border to invest would
produce the same results. Trends in foreign stock
markets generally do not always correlate highly with
bull or bear market cycles in the U.S. stock market.
While one or more foreign stock markets may at any time
be moving in the same direction as its U.S.
counterpart, longer-term correlations are low. This
means that diversifying beyond a single market, such as
the U.S., should reduce the overall volatility of your
stock portfolio over time. In addition equity markets
in one or more foreign countries almost always
outperform U.S. stocks each year.
Some American investors dismiss investments in
overseas companies as risky, but they are living in
yesterday's world. Many overseas investments are more
conservative than their U.S. counterparts.
For example, Swiss drug stocks typically have a
price-to-earnings ratio less than half that of U.S.
companies. (Dividing a share's price by the company's
earnings per share is a basic way to compare stock
prices.)
Think of brand names known worldwide for
investment potential. Companies such as Coca-Cola,
Boeing, Disney, Ford, Citicorp, and Philip Morris are
so multinational that they are not dependent on the
U.S. economy, which is one of the things an investor
would like to achieve.
A number of Canadian resource stocks are traded in
the U.S. over-the-counter market, and on the Vancouver
Stock Exchange. Most of these are highly speculative,
but a certain small part of every portfolio should be
devoted to speculation. For more information on
techniques for making money in small speculative
stocks, send for a brochure from Penny Stocks, Dept.
70197, P.O. Box 5385, Cleveland TN 37320.
Putting Your IRA or Pension Plan into International
Investments
U.S. law requires that assets in pension plans be
physically held by a trustee in the United States. For
two products -- foreign currency certificates of
deposit and Swiss annuities -- a service is available
that will let you place these products in your U.S. IRA
or pension account.
International Financial Consultants of Rockville,
Maryland, using the services of the venerable Delaware
Charter Guarantee and Trust Company, can provide the
required custody and accounting services. Delaware
Charter was founded in 1899 and now manages over US$8.5
billion in trust assets, the largest of any non-deposit
U.S. trust company. However, they will not offer their
services directly, but only through intermediaries.
Michael Checkan and Glen Kirsch of International
Financial Consultants provide a service in which IFC
handles all the year-end currency conversion accounting
required by IRS rules, and Delaware Charter compiles
the annual reports to the IRS. They are well known in
the financial newsletter industry and at one time or
another have been recognized as a "recommended vendor"
by many of the writers in the newsletter industry. The
principals, Michael Checkan and Glen Kirsch have been
in the foreign exchange business for a combined total
of 50 years.
For further information write to International
Financial Consultants Inc., Suite 400A, 1700 Rockville
Pike, Rockville MD 20852 and ask for information on the
offshore retirement account service.