Global Investing means investing with a global viewpoint.  It requires understanding the interconnectedness of markets, understanding the cause and effect relationships that create opportunity and risk, and then investing in markets throughout the world’s developed and developing countries to take advantage of wherever the growth in economic activity and opportunity is greatest.

For Americans, investing in the U.S. has been the primary focus for the last century.  As the new millennium has dawned, many have become aware of the rapid economic growth experienced in the world outside of North America.  Certainly, the U.S. and Canada are an important part of any investment portfolio, and investors have been aware for decades that Japan, Europe and Australia have grown.  Now, investors see and hear of the rapid economic growth and development in China, India, Brazil, and other parts of Asia, Europe and Latin America.  They are beginning to take notice of the growth, but do not know how to, or if they should participate.

The above statistics imply that U.S. stocks make up about 36% of all global stocks that are traded in the world. Other statistics suggest that 70% of all stocks traded in the world (as measured by value) are non-U.S. companies.  So, if you only own U.S. stocks, you are ignoring 65 to 70 percent of the value in the global stock markets.  Also if you only own stocks that are traded in the United States, then you are ignoring half of the stocks traded around the world. 

Since many of the stocks are of companies in parts of the world growing faster than the U.S., you may be ignoring some of the best opportunities.

1.1   HOW DO YOU BENEFIT FROM THIS GLOBAL ECONOMIC GROWTH BY INVESTING ABROAD?  IS FOREIGN INVESTING WORTH THE RISK?

Investing outside the United States has proven to be profitable.  Lately, outside the U.S. is where the growth is, and, while there are many variables, stock prices follow the growth in the underlying economies.

The opportunities to profit are many.  How do you take advantage of those opportunities without taking unnecessary risk?  Can individuals navigate the markets effectively?  How can  individuals improve their likelihood of success? It can be done, but it requires considerable information gathering and analysis.

In the coming pages, we will discuss how we at Guild Investment Management, Inc. identify opportunity and risk in the global markets.  Please feel free to use this "white paper" as a resource, or feel free to contact us at Guild Investment Management www.guildinvestment.com if you would like to discuss our global portfolio management services.  Investing yourself in the global markets requires time and significant background in financial analysis to be successful.  The information below can also help you evaluate your current money manager or one you may be considering. 

The International investing process has three elements to which investors must be more alert  and skilled at accessing.

I.    Understanding the mechanics of investing abroad.
II.   Deciding which countries holds the best opportunity for profit.
III.  Deciding what to buy, which industries and companies offer the best values?