8/6/2019 Exceptional Profits? Try Investing in Foreign Markets

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Exceptional Profits? Try Investing in Foreign MarketsForeign markets are often referred to as emerging markets if anything, but the European market is included. Foreign stock markets have been offering larger returns than the U.S. stock market for most of this decade, partly because they start out at a lower base. Investors exposed to foreign market growth potential of the emerging countries, can hop on the high-return gravy train, so long as they avoid the ride off the cliff that has happened frequently with emerging market st

ocks.Here at Credi Corp Securities we are committed to offering our clients access tothe latest and broadest range of financial services and products on the market.We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.Foreign Markets Include BRIC and Feeder CountriesSome of the foreign emerging market countries include Brazil Russia, India, China, Vietnam, Taiwan, Israel, and even New Zealand and Australia can be included.Part of the attraction of several of these countries is that their overall market value is significantly lower than the US market value. For example: trading a

five dollar stock can offer larger percentage returns based on a given capital investment than a $50 stock because of the nature of larger numbers versus smaller numbers.Smaller numbers can increase more rapidly on a percentage basis than larger numbers with a given level of investment. This fact alone allows emerging markets tooffer larger percentage returns. For example, the entire US stock market is valued over $21 trillion, where China's entire stock market is valued at approximately $1.6 trillion. For a $21 trillion market to double in value to $42 trillionis a significantly more difficult feat than a $1.6 trillion market doubling to $3.2 trillion.Foreign Emerging Markets with Manufacturing and Agricultural PowerMeanwhile the emerging countries all have significant agricultural production aswell as growing manufacturing production. The level of absolute production is n

ot as critical as the growth rate of the production of various industries, bothagricultural and manufacturing, because stock markets in a foreign market or anemerging market are a future predicting device.Foreign emerging markets offer significant profit potential in the stock arena because their populations are growing, often at a rate double or triple of the developed Western world, with the exception of Russia, also because they are manufacturing and growing agriculturally. Brazil, for example, has become one of theleading producers of cotton, corn, and soy even displacing the U.S. in some markets.One of the challenges of investing in emerging markets or foreign markets is that these markets have significantly higher market volatility or risk. One methodmitigating this risk is to employ 15% stop loss, in all market investments. With

this stop loss used for foreign market investing the tremendous profit potential can be enjoyed while limiting the eventual crashes that afflict foreign emerging markets frequently. Additionally, currency losses used to be a common problemwith foreign market investing. The dollar for instance has been sliding againstmost currencies, the value of the foreign currency has added to the returns onforeign market investing. Ultimately, depending on which markets you are investing, with currency fluctuations it is possible to make money both on the investment and on the conversion back to your own currency.About the Author:Jonathan Moore is a Senior Vice President at Credi Corp Securities, with experience in the Financial Services industry spanning over 25ys and 3 Continents. Jonathan currently directs the Portfolio Risk Management Group after moving from theEquity Derivatives Research Group 3yrs ago. He has a PhD in Experimental Partic

le Physics and has been working in the alternative investment industry since 1992. His interests include climbing, mountain biking and running and he recently completed the Marathon des Sables, a 142-mile endurance footrace in the Moroccan

8/6/2019 Exceptional Profits? Try Investing in Foreign Markets

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Sahara.Want to know more?Credi Corp Securities is an independent investment advisory firm which focuses on global equities and options markets. Our analytical tools, screening techniques, rigorous research methods and committed staff provide solid information to help our clients make the best possible investment decisions. All views, comments,statements and opinions are of the authors. For more information go to www.cred

icorpsecurities.com.