Getting a Global Investment Exposure in the direct way

Many of American investors considers that getting global investment exposure just means buying some US exchange listed Pepsi shares or some other such international company which has a huge part of its income outside USA. But this is not the real investing way to get global exposure. Global Investment for the most part is not just buying US companies with source of income around the world, it means owning the real thing, and its not Pepsi. It means investing to non-US exchange listed companies in select foreign countries! Buying US listed companies with high non-US Dollar revenues have the same baggage/handicap other US companies have, among them: very high employee expenses, possible unfunded US pension liabilities, too much complex balance sheets and a few the executive options perk back dating nonsense. And mostly US stocks have very high p/e ratios' and very low at dividend yield. Most of all US stocks are priced in US currency, likely to be very weak currency from now on.

Foreign shares are priced daily in dollars to US based investors but the point is the underlying stock is in a foreign currency. So if A,B or C's stock price does not move at all, but the US Dollar continues to decline its value, his stock price in US dollars will move-up nevertheless.

US investors especially should consider owning value shares in emerging market for high dividend yield, high growth, low p/e's and US currency declination protection. Especially in Asia market, countries like Thailand, Malaysia and India still has a lot of very good potential and low risk shares to buy and hold for a least 1-2 year from now (2007).

To US investors whom want global exposure, I suggest to own the real thing, and it is not just Pepsi !

Source: www.bullish.info