Foreign investments to go for and ones to avoid

Since the US economy went sour a little bit ago and many investors saw their entire retirement accounts drained right before them, there has been a number of investors that have taken action to protect their investments from this happening again. Foreign markets are always great to market in especially when the US economy isn't going so well. Which foreign investments should you make and which should you avoid?

Hot foreign investment - Brazil
Investing in Brazil is the best option right now. Their economy is strong and their commodities are in demand. If you want investments that are going to give you excellent returns, Brazil is the way to go.

Bad foreign investment - Saudi Arabia
For many years we heard about how Saudi Arabia was the perfect country to invest in because of their oil refineries and shipping supply companies. While Saudi Arabia has oil, its overall economy is not strong and it's not a hot foreign investment to consider at this time.

Investing internationally offers so many different options that you don't have in the US. The potential to have higher returns is almost double compared to what you will experience in the US. However when you start investing a large amount into foreign investments, you will need to watch out for large losses when other economies are starting to look weak. The amount of risk depends on the security you take such as real estate investing, stock market investing, or bond investing.

The right financial advisor will be able to help you come up with a smart foreign investment plan. Contact someone that has a lot of experience dealing with foreign investments and will be able to help you understand foreign markets. Bruce Lefavi is a great financial expert dealing with foreign and domestic stocks as his predictions have been correct 9 out of 10 times.

Whenever you decide to make the jump from domestic to foreign stock, you need to understand the different risks and options that are out there. What fees will be imposed on your foreign stocks compared to US stocks and are the returns worth paying the fee amount? Since each government is different, you need to consider how the government policies in these countries will actually impact your investment portfolio.

Not only do you need to consider the political aspects of foreign investments, you also need to take a look at the currency exchange rate. Will you make a larger profit in other countries but when you convert it to US, will you break even or hardly gain anything? The currency rate is always a big risk and it can cause issues for your investment portfolio. Watch for companies that look profitable and have the potential to be huge because the currency exchange rate really can damage your portfolio. Take a look at the Peso for example. It had a huge loss over the past and no matter how much you invest, you are going to end up losing a lot of money with the Peso compared to the dollar.

Research and timing will help you to select the correct foreign investments. You need to understand the different stocks you are investing in and learn about their performance in order to see how they will do in the future. Learn about the stock, don't just focus on the ticker symbol and the name when you are making the decision to invest in foreign stocks. As you learn about the management structure along with what the company represents and how they run, you will be able to weed out the companies that have failure written all over them compared to the ones that have a lot of room to grow.