Global Investing Opportunities

With the global markets becoming increasingly intertwined, investors are no longer limited to just investing in their local market. In this day and age of advanced technology, US investors can trade UK or Japanese stocks just as easily as they can trade US stocks. The same is true for other investors around the world who are seeing easier access to foreign markets thousands of miles away. However, as certain as you may be about where the Nikkei is headed, investing internationally comes with a risk that may not be as apparent. Foreign or currency risk is a gripe for investors big and small. Sometimes they can compound profits, but just as often, they can significantly reduce losses. Therefore, hedging or at least keeping an eye on the currency market is a must for any investor dabbling internationally. Over the past year, we have already seen currency fluctuations have a profound impact on market returns.