I’m sure there are many fine and safe stocks to invest in all over the world. In fact I would be willing to admit that a few might be better investments that any you will find here in the United States.
Now given my admission I will state that ,I as a general rule, will not invest in non U.S. based stocks. Not because there are not good investments elsewhere in the world but mostly because there are so many great investments to make here in the U.S. I doubt I will ever be able to own all the stocks I would like because there are just so many and my funds will never be enough to do so. Now I am not a Billionaire, in fact a long ways from it, but even if I were, I still could not invest in all the stocks in the U.S. I would like to. Chances are I will always discover more stocks to invest in than I have money.
So if I cannot invest in all the stocks in the U.S. what would be my reasoning for doing so? One argument I hear is to help spread the risk and another argument is that the other markets might out preform our market. Maybe at one time those were valid arguments but I don’t believe they hold true any longer. Most companies operate internationally now days with many foreign companies selling here in the U.S. and many U.S. companies selling all over the world. In fact the markets also many times move in tandem but even when they do not it does not make a lot of difference to how much your gains will be.
My reasoning is I get all the international exposure I need just by owning most large U.S. stocks because they operate internationally. I also know these companies are scrutinized carefully by U.S Investors and the Federal and State governments and have to answer in American court systems. In addition I do not have to worry about foreign derived taxes. Another thing I like about American stocks are the dependability of the dividends. Many foreign based stocks pay irregular timed dividends , that is they do not pay on a set schedule.
So for me on this 4th of July I am declaring my patriotism by sticking with stocks from the good ole USA !
Enjoy your holiday folks because I am heading out to back yard to grill some steaks and relaxing for the remainder of the day! Hope you are enjoying your day off as well.
Any thoughts are comments are always welcomed !