Time to buy international equities?
Source: The Bull
According to an article by Tony Featherstone – Buy Global Equities – Is Now The Time? Now might be a terrific time for Australian investors to buy international equities.
The article states the case to buy international shares is strengthening as the Australian dollar falls, the United States recovery firms, and Japan awakens from its economic slumber.
The Australian dollar has tumbled from almost US$1.06 in early January to about US98 cents. Stronger demand for the Greenback, expectations of lower interest rates in Australia, and weaker commodity prices are pushing our dollar lower. It could slowly head towards US90 cents according to the article.
In addition to the above, the article makes the following points, amongst others:
- International equity returns have been less than stellar for the for the past ten years, however history shows that the worst performing asset classes for a particular period of time often become the best performing asset classes in the period to follow.
- Investors should focus on broad allocations to regions rather that selecting individual stocks.
While we agree with many of Tony’s comments, at UGC our aim is to help private investors access the world’s best investment opportunities and as such strongly advocate selective investment in companies listed overseas. By owning ETF’s or widely held managed funds, its possible you could end up owning so much rubbish that you actually dilute the significant opportunities available in these markets.
At UGC we believe that there are at least three major long term investment themes specific to the US market, which can’t be accessed here in Australia including:
- New discoveries of US shale oil, gas and natural gas liquids and the industrial renaissance that is likely to occur on the back of that.
- Investment in world class technology companies at a time when technological innovation appears to be ramping up at an unprecedented rate during this present technology revolution.
- Positioning for a strong rebound in US housing, where housing prices are close to all time lows and look set to recover strongly over the coming years.
In fact when its comes to the US real estate recovery, we actually advocate owning individual properties which pay huge sums of cash flow to own them and owning companies that stand to benefit significantly from the recovery.
If you would like to learn more about how UGC is helping private investors take advantage of these powerful investment themes, contact UGC today and speak with one of our financial strategists for a No Cost, No Obligation consultation on 03 8657 7640 or email [email protected].
The information contained in this report is General in nature and has been prepared without taking into account your objectives, financial situation and needs.