Magazine article Black Enterprise

Hunting Profits 'Round the Globe: Go on. Join the Crowd of Investors Whose Portfolios Have Wings

Magazine article Black Enterprise

Hunting Profits 'Round the Globe: Go on. Join the Crowd of Investors Whose Portfolios Have Wings

Article excerpt

Go on. Join the crowd of investors whose portfolios have wings.

You've heard of the armchair traveler - a homebody who conjures up elephant treks through Thailand and dinner atop la Tour Eiffel. Well, with economic activity heating up abroad, 1994 may well be the year of the armchair investor. Places on the itinerary to watch: Latin America, Southeast Asia, Continental Europe - even Turkey and the Netherlands.

Financial planners concur that a properly diversified portfolio includes a good dose of international holdings - anywhere from 10% to 30%. This rule holds especially fast today, given a bloated U.S. stock market.

Just where should you steer your wallet, and why? Falling interest rates in many parts of the world, including Spain and Turkey, signal opportunity. Declining rates push money into the market, making it easier for companies to invest, points out Vivian Lewis, editor of Global Investing in New York City. And because these countries are mainly exporters of goods, they benefit even more when their currencies decline.

Investors within Latin America, specifically Mexico, stand to benefit from the anticipated free-trade agreement. With a stock market that's 40% cheaper than ours, "there's great long-term potential there," explains James Clunie, portfolio manager at Murray Johnstone International, a global investment firm in Chicago.

And while many pros contend that Asian hotbeds such as Japan and Hong Kong are tapped out for the moment, they cite Malaysia, Australia and New Zealand as hot prospects. …

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