Investing in international stocks can offer a world of opportunity, Turner Investment Partners posit
BERWYN, Pa., May 14, 2008 – International stocks figuratively and literally offer a world of opportunity to investors. And with the exception of a few twists, the same principles of sound investing apply to both international and U.S. growth stocks. That’s the conclusion of the latest position paper by Turner Investment Partners.
Turner, an investment-management firm that invests in core, growth, and value stocks on behalf of institutions and individuals, publishes position papers commenting on business and investment issues each quarter.
The paper, entitled Six keys to investing in international growth stocks, notes the abundance of opportunity represented by the more than 37,000 international stocks that are available for buying and selling. It offers six investing precepts for investing in those stocks. For instance, investors should focus on large companies and their earnings prospects; understand differing accounting standards overseas; be aware of the effect of currency fluctuations on returns; consult with industry experts selectively; and consider the unique biases of each country’s market.
Written by Chris McHugh, vice president and senior portfolio manager/security analyst; Bob Turner, chairman and chief investment officer; and Mark Turner, president and senior portfolio manager/security analyst, the paper notes that international stocks present special risks that should be taken into account, but once you identify and understand the differences in the markets, some risks "tend to be offset by the rewards offered by international growth stocks. Since the 1970s international growth stocks have offered returns equal or slightly superior to those of their U.S. counterparts."
The authors conclude that the merits of investing in international stocks are widely accepted, but how well those opportunities translate into positive returns "depends primarily on the soundness and thoroughness of the investment process used."
To read the paper in its entirety, see the Turner Investment Partners Web site, www.turnerinvestments.com/positionpaper. Or call 484-329-2439 for a free copy of the piece.
Foreign investments are subject to risks not ordinarily associated with domestic investments, such as currency, economic and political risks, and different accounting standards.