January 28, 2021

Why You Should Diversify w/ Emerging Foreign Stocks

When it comes to owning stocks, diversifying your portfolio is basic stock investing 101. Why? Because if you have a bunch of stock in the same industry/sector & that sector fails and starts a down trend; you risk losing everything. The classic cliche of not keeping all your eggs in one basket.

If your stock portfolio is diverse in different sectors, you can survive and take the hit if one sectors starts to become weak or decline.

Here at the World Wide Hustle Brand, we are going to take a step even further when it comes to diversifying your portfolio; by investing in emerging foreign markets & stocks.

Here are a few reasons to invest in emerging foreign markets & stock:

The weakening of the US Dollar & possible inflation.
Assumably trade friendly Biden administration.
US debt accumulating.
More money being printed from the Fed.
Value/Growth Stocks in these emerging foreign markets (due to early stages of capitalism in emerging countries)
Buffet Indicator - Showing that the US Market is OVERvalued.
Foreign market & stocks are UNDERvalued.

What countries are emerging?

Technically China is an "emerging market" but they are already a powerhouse. That is like saying Patrick Mahomes or Giannis Antetokounmpo are up & coming superstars after winning MVPs and a Superbowl. They have already made their impact on the game/market.

These markets I am about to mention are like Donovan Mitchell from the Jazz or John Allen on the Bills.

Here are the emerging foreign markets I have my eyes on:

Taiwan (already invested)
Chile (already invested)
South Korea (watch list)
Russia (on my watch list)

Here are the foreign market sectors I have my eyes on:

Semiconductor (already invested)
Clean Energy (already invested)
Goods (on my watch list)

Taiwan is in high demand to produce semiconductors, because of the demand for chips from the automotive companies.

Companies such as United Microelectronics Corp (UMC) & ASE Technology Holding Co. (ASX) are some major players in the semiconductor game. Both of these are under valued w/ nice market caps, EPS, growing & steady revenues, along with good debit:asset ratio.

Along with the emerging market of Taiwan, these could be a recipe for good returns. As always though, do your own due diligence.

South American energy companies are looking to go green with clean energy. Chilean company Enel Americas (ENIA) is a company moving in that direction. By generating electricity, transmission and distribution to businesses in Brazil, Colombia, Peru, and Argentina.

Wrap Up

As the world invest into the global economy and with foreign stocks being undervalued; now is the perfect time to invest in foreign stocks.

As these countries evolve more into a capitalist society, this allows rooms for growth throughout the next few years.

Like with any type of investment, some risk are invovled when it comes to foreign stocks. Such as foreign policies, economical, and social events, so what ever country you decide to invest in; stay on top of what is going on there.

Make sure you check out our Hustle Lifestyle Appareal - Click below to shop - www.WWHustleBrand.com