White Paper 3 - Bulls To Bears

The U.S. financial markets offer unmatched opportunities for investors around the globe. Major corporations from many countries list their stocks on U.S. exchanges, U.S. government bonds directly impact global interest rates, and the U.S. Dollar is still the premier currency in the world.

The primary reasons to invest internationally are high returns and diversification. While foreign stocks are typically more volatile than U.S. stocks, adding U.S. exposure to a portfolio will normally reduce the risk of the portfolio without lowering returns. For international a portfolio of 30% US stocks and 70% international stocks will likely have similar yields with a lot less risk than a portfolio of 100% foreign stocks.

BullsToBears.com offers access to U.S and foreign stocks, providing our international customers the ability to trade international equities alongside U.S. equities. BullsToBears.com's investing opportunities might match your strategy. We are is dedicated to providing foreign investors with advanced research and trading tools to help manage U.S. investments on their own terms. Find international investing opportunities with in the U.S..

International trading is now available in accounts of all sizes, making it a reasonable proposition for the foreign investor to buy U.S. equities. For many years after World War II, the United States dominated the world economy. Today, the international markets have become a much more dynamic and multifaceted place for investors than they were in the past. Many new opportunities have emerged, but finding them requires the resources and experience to conduct a truly global search. Once, again bullsToBears.com is your answer.

Like foreign stocks, U.S. stocks are subject to fluctuations based on earnings, interest rates, and the outlook for inflation. But, stocks from emerging markets are vulnerable to political and economic instability as well. They're also exposed to a risk that is unique to international investing—the volatility of currency exchange rates. Additionally, while accounting practices are becoming more uniform among developed markets, financial information about specific companies in U.S. markets can still be easier to obtain.

The main thing you have to know about investing in just your foreign stocks is that they are much riskier than U.S. based stocks. Also, many international stocks don't have much liquidity, two problems arise: first, there is the possibility that the stock you purchased cannot be sold. If there is a low level of liquidity, it may be hard to find a buyer for a particular stock, and you may be required to lower your price until it is considered attractive by another buyer. Second, low liquidity levels provide opportunities for some traders to manipulate stock prices, which is done in many different ways - the easiest is to buy large amounts of stock, hype it up and then sell it after other investors find it attractive (also known as pump and dump).

For foreign investors Investing in U.S. exchanges can be as easy as buying domestic stocks, or much more challenging depending on the regulatory framework of the country in question and the level of technological development there. In some countries, foreigners are completely barred from the U.S. stock exchange or from specific classes of stocks.

In conclusion, by including exposure to both domestic and foreign stocks in your portfolio, you'll reduce the risk that you'll lose money and your portfolio's overall investment returns will have a smoother ride. That’s because international investment returns sometimes move in a different direction than U.S. market returns. Even when international and U.S. investments move in the similar directions the degree of change may be very different. When you compare the returns from emerging international markets with U.S. market returns you may see even wider swings in value with U.S. stocks in your portfolio.

Bottom line: If you don't own U.S. shares, you may want to consider adding some to your portfolio. Just make sure you do it as part of a short -term diversification strategy. Investing in this new era, an age without full service stock brokers, a profit is a profit no matter how it's made, and that's why foreign investors have turned to BullsToBears.com for our daily stock and option picks, investment advice and no nonsense research and analysis.

Get your free 2 week free trial to BullsToBears.com today to learn about exciting U.S. equity opportunities that lie with your grasp.