The global marketplace has stepped up to offer unprecedented opportunities for investors looking for a change of pace. From digital currencies revolutionizing investment and trade practices to developing economic sectors growing stronger than ever- amidst increasing geopolitical tension – those who can identify these emerging trends stand remarkably well-positioned in their pursuit of reward beyond borders and Expanding Your Business Internationally.
Kavan Choksi shares his in-depth look at global markets and which opportunities have the most potential for investors. Learn how to capitalize on market trends with strategic guidance from this leading expert.
It may be discouraging for investors when international equities are lagging in returns, but the current conditions don’t necessarily mean long-term gloom. Emerging markets have their share of regional issues to grapple with, and a strong U.S. dollar has impacted global economies – yet despite this myriad of challenges, there is still hope on the horizon as strength can arise from adversity if we look towards new opportunities that exist amidst these difficult times.
Are you planning to Expanding Your Business Internationally or emerging markets companies?
Here are five compelling reasons that you should consider Expanding Your Business Internationally;
According to Kavan Choksi, investing in international and emerging market companies may sometimes seem daunting, but ignoring these opportunities could mean missing out on some of the most robust portfolios.
While it’s true that global economies can be volatile at times, compelling reasons exist to broaden your investments outside U.S. borders for truly great returns.
1. Invest in Companies, Not Economies
Investing across borders can open up a plethora of possibilities for investors. By focusing on individual companies with fundamentals that stand out, regardless of their economic environment, you will be well-positioned to identify strategic opportunities and maximize your returns.
As the economy shifts from global macroeconomic conditions to individual business performance, investors must stay abreast of news and information related to particular companies. Investing in such specific stocks can be complex, requiring sophisticated research skills and greater attention paid by industry professionals and savvy shareholders.
According to Gerald Du Manoir from American Funds International Vantage Fund SM, multinational companies often have little exposure to their home countries’ economic conditions.
Despite troubles afoot in Europe and other emerging markets, he remains confident that many potential investments are still waiting for discovery within these locations. Examples include Airbus’ presence in the United States and China, LVMH’s foothold on luxury goods throughout America, and TSMC, one of the world’s most prominent semiconductor manufacturers based outside Taiwan – illustrating how seeking opportunity beyond borders can bring success regardless of local circumstances.
Kavan Choksi mentions that in the face of economic uncertainty and a competitive business landscape, global companies are finding success amidst diversified market strategies.
Airbus is on track to deliver 700 commercial aircraft this year–a testament to their adaptability in today’s world economy. Further proof can be found with France-based LVMH’s 27% increase in third-quarter revenue from U.S tourists buying discounted luxury items thanks to currency exchange shifts or Taiwan-based TSMC taking advantage of government grants for bringing chip production back home by expanding its manufacturing capabilities within Arizona – showcasing how well-renowned organizations have capitalized upon opportunities worldwide resulting in remarkable profits despite trying times.
2. Don’t Let the Strong Dollar Hold You Back
Staying ahead of the economic curve is key, and even a powerhouse currency like the U.S. dollar won’t last forever – now’s an ideal time to prioritize positioning yourself for success in this ever-changing economic landscape.
The U.S. Dollar has enjoyed significant strength in recent years due to the American economy’s overall stability, higher interest rates, and its status as a safe-haven currency choice for investors seeking protection from market volatility overseas.
This trend was accelerated this year when the Federal Reserve raised rates significantly to curb inflationary pressures. Unfortunately, these strong dollar winds have made investing abroad more challenging by lessening returns upon conversion into dollars.
Kavan Choksi mentions that with the U.S. dollar currently overvalued by an estimated 20%, Capital Group currencies analyst Jens Søndergaard has suggested that these conditions won’t last long. While no signs are pointing toward a peak in its value, all attention is now turning to what the Federal Reserve will take action.
Despite conventional wisdom, a strong U.S. dollar does not always have negative implications for companies outside the United States. Indeed, some organizations may benefit from this currency effect. Take Sanofi – the French drugmaker reported that an impressive 1 billion euros boosted its sales in the first half of 2022 due to exchange rate fluctuations alone.
3. Tap Into International Global Dividend Opportunities
Investing in international stocks can be attractive for investors looking for dividend opportunities.
Kavan Choksi says any overseas markets offer yields far greater than their counterparts within the U.S., so investors should look abroad when considering where best to capitalize on juicy dividends.
While some investors may have once viewed dividend-paying companies as dull and unappealing investments, today’s choppy markets reveal a different story. Now more than ever, “boring is beautiful,” according to Caroline Randall of Capital Income Builder® – referring not only to the U.S. but also international and emerging markets where dividends are an integral part of investment opportunities.
Recent data showed that by October 31st, 2022, 600 non-U.S.-based stocks were yielding between 3% and 6%, whereas there were just 121 in America offering comparable returns then.
4. Leverage the Power of Old Industries to Fuel New Economy Growth
Kavan Choksi notes that the coronavirus pandemic has caused a major disruption in the stock market, causing investors to adapt to the ever-changing environment. With e-commerce and social media companies struggling, attention is now being shifted toward more traditional businesses, such as those within the materials, financials, and industrial sectors, many outside America’s borders.
Meanwhile, tech giants like Apple Inc., Amazon, and Microsoft continue providing innovative solutions from inside U.S. territory, driving growth in the healthcare sector worldwide during times of uncertainty.
The past decade has seen a stellar performance for U.S. tech stocks, driving the gap between U.S. equity returns and their non-U.S counterparts in an unprecedented manner. Although this sector is still ripe for further growth opportunities, it also stands today at much more advanced levels than ten years ago.
Investors looking to branch out may want to explore international markets. From here, one can discover undervalued stocks or uncharted territories as opportunities for portfolio diversification that transcend traditional U.S.-based investments – something Lisa Thompson of New World Fund strongly encourages.
5. Think Beyond the U.S. Stock Market
With the international stock markets booming, investors may consider diversifying their portfolio beyond U.S.-based stocks for even greater returns and reward potentials.
Kavan Choksi mentions that many investors in the United States have typically overlooked a remarkable trend over the past decade. Companies outside U.S. borders consistently delivered higher annual returns than tech stocks within American boundaries. The top 50 international firms offering excellent value to their shareholders often go unnoticed and Expanding Your Business Internationally, proving that financial success doesn’t always depend on geographic location.
In conclusion, many investors have traditionally overlooked international equities as the U.S. market offers some of the strongest support systems for growth and prosperity. However, it is possible to leverage the power of Expanding Your Business Internationally and increase your wealth or portfolio diversification in ways that can reduce risk and boost returns.
For those looking to take advantage of the unique opportunities in international markets, Kavan Choksi’s outlook carefully balances risks related to currency exchange rates, value-based investing, dividend yield strategies, and more. The global environment is exciting and ever-evolving – don’t miss the tremendous access to growth. Investing or Expanding Your Business Internationally in international stocks and funds requires careful research, so take the time to understand all aspects before investing your hard-earned money.
Kavan Choksi is an accomplished investor, consultant, and wealth advisor who provides companies in the fast-moving consumer goods, retail, and luxury markets with strategic direction to transform their businesses. Not only does he possess a deep understanding of economics and finance that has enabled him to excel as an investor, but Kavan also enjoys sharing his knowledge so others can make smart & sound financial decisions.
