I’m new to investing and recently opened an Ameritrade account. My goal is to build a strong dividend portfolio. While I am primarily interested in
If it helps, two companies I’m looking at specifically are Nordea (NBNKF) and Swedish Match (SWMAF). Ameritrade doesn’t seem to accurately track Nordea original shares, as it was showing it’s price to be under $8 all day today but other sources say it’s over $9 currently. There is also a huge price difference between Swedish Match ordinary shares and ADR. I understand there are costs associated with currency conversion but the actual ordinary shares are almost double the price of the ADR.
What is an international stock?
International and global stock funds typically own many individual stocks in different countries and across different industries.
International and global stock funds can be an important part of a diversified portfolio. Like all mutual funds, international and global stock funds can potentially invest in a large number of securities, giving you a cost-effective way to own shares in many different companies. However, unlike domestic stock funds, which invest primarily in US companies, international stock funds primarily invest in companies outside of the US. Global stock funds have the ability to search for investments in both US and non-US companies, helping you take advantage of the opportunities presented by the global economy. Understanding the difference between international and global stock funds, as well as their potential advantages and risks, is an important part of international investing.Read More….
Are international stocks overvalued?
The only stocks going up this year are U.S. stocks—on the back of Trump’s corporate tax cuts, which have increased earnings at domestic companies. But the effect of this tax break is already well baked into stock prices and U.S. stocks are now dangerously overvalued, trading at 18 times forward earnings and 25 times trailing earnings. Meanwhile international stocks have lagged far behind. Nearly all major stock indices outside the U.S. (except Japan) are down or under-performing domestic stocks year-to-date.
This time the disparity is wide and vast. The only certainty is that any trend will reverse eventually. Whether in a week, six months, or a year, at some point the fashionable sector (i.e. U.S. stocks) becomes deeply unfashionable and the out-of-favor sector (i.e. emerging markets) once again finds itself intensely appreciated. As surely as wide neckties and narrow ones trade places in the fashion hierarchy, so do major asset classes. Read More