International Investing

Our take on the investing, financial, & economic themes of the day

What’s the Truth Behind All the Beautiful Pie Charts?

When an investor brings his portfolio to a new money manager or broker for advice, he naturally wants to know: what would you do differently than the guy who’s currently managing my money?  The imperative to answer this question has given rise to an arms race in portfolio ... read more...

But I Don’t Own Any Chinese Stocks!

18 November, 2015 by Paul Devine in Commentary
“But I don’t own any Chinese stocks!” many individual investors moaned late in the afternoon of Monday, October 26th, “So why has the value of my portfolio dropped?” That’s a reasonable question for investors who have prudently purchased high-quality U.S. stocks, only to see the prices of those ... read more...

Bubble Watch: From Umbrellas to Internet Finance

22 June, 2015 by Matthew O'Brien, Ph.D. in Commentary
My previous post looked at the bubble in Chinese stocks and the decision of Vanguard and FTSE Russell, in spite of sky-high valuations, to incorporate such stocks into their emerging market indices and funds.  Here’s a nice confirming anecdote about the Chinese rally that I came across in ... read more...

Proctor & Gamble’s (Temporary) Currency Headwinds

26 April, 2014 by Matthew O'Brien, Ph.D. in Commentary
In Proctor & Gamble’s recent quarterly earnings report, the company announced a two percent growth in profits.  Profit growth would have been much less tepid if it weren’t for the effects of foreign exchange.  In 2013 P&G’s U.S. sales amounted to $30.3 billion, while ... read more...

The Investment Perils and Promise of Currency Manipulation

3 January, 2014 by Matthew O'Brien, Ph.D. in Commentary
About 40% of sales from companies in the S&P 500 Index come from their businesses in international markets, so an investor who buys American companies has greater exposure to foreign economies than he might realize.  Our clients’ equity holdings are primarily U.S.-listed stocks, but we ... read more...