*This article is written, as a view of South Korea. So, it you are not South Korean, it will be good to read this for your reference.
Review of Investment for Foreign Stock Market as Starter: Australia/United Kingdom/United States
Background
Recently, world stock market has been fluctuating violently. A collapse of stock market in the last week of March is incredible shock, such as IT bubble in the early of 2000, and sub-prime crisis in 2010′. With this situation, a discussion about bottom of stock market is now hot. Anyway, now, a stock market become a superstar to all people want to get more money. An opinion about the bottom of stock market is absolutely half-and-half.
By the way, one of the certain things is that a value of stock market is so depreciated now, which means that now is the best timing to make investment of stock market. Based on these situations, I decided to make investment for stock market.
Current Situation
A few days ago, U.S Federal Government mentioned unlimited fiscal stimulus package, and other countries followed this. This policy quickly applied to all stock markets. Recently, stock market is so sensitive to even one good or bad news. However, totally, the market is more active to good news than bad news. This situation shows that people tend to believe in or see positive factors.
By the way, there is unique or uncommon situation, which is that South Korea’s stock market is almost closed to the previous highest point. And, its speed is faster than other countries.
Personally, I think that this trend is not bad. However, its speed is too fast. Also, its speed and recovery are led by individual investors. Therefore, I thought that these situations are risky.
Why Foreign Stock Market?
I consider that it will not be a great option if all people has the same situation because of high commission fee and tax. In spite of that, there are some reasonable points to make investment for foreign stock market. There are two key points. One is to find the country that a value of their currency is sharply decreasing. The second point is a speed of stock recovery is not fast.
A country I made the biggest investment is Australia. Their currency value was the lowest, and its value is increasing. Therefore, I utilized this point as my strategy.
In this strategy, if its value increased, my profit will be doubled. Also, one of positive points is that Australia actively and positively cope with COVID19.
The second country is United Kingdom. In the case of UK, a recovery of stock market is slower than other countries. This is because UK’s COVID19 strategy is not effective. Also, UK is related to Brexit Plan. However, the certain thing is that UK has the most powerful finance market, and they will recover it.
The third country is United State. In the case of U.S., their recovery speed of stock market is so fast due to fiscal stimulus. In other words, their policy is making inflation of stock market and dollar. And, most people believe that they are still be the best because they still have key currency.
No Professional
On the above, I explained why I invest in foreign stock market, and now I will describe how I invest. Recently, a critical point I realized is ‘I do not need professional for investing stock market’. Many blogs or online news related to stock market are already offering basic and essential guide about key index for good investment.
And, a lot of new services utilizing various information related to stock market index or data is recently launched by Fin-tech or Start-up companies. A service I’m using is ‘Simply Wall St‘, which is offering various index or data related stock market with info-graphics.
*Not advertising article. But, I think that it is hard to find the service offering data with infographics.
A point which I’m using this service is only for reference. There are a lot of services offering data from stock market. I just judge if I invest or not, based on the following baseline.
- Under 10~20 P/E Ratio
- Under 3 PEG Ratio
- Under 50% Debt Ratio
- Insider Trading: If insiders sell their stock or not
- A speed of stock recovery
- Past performance for 1 or 5 year
- High potential of the company *with little personal intuition
The above is the basic indexes generally evaluated by professionals.
Subjective Opinion
Because all information is opened by advanced development of Information Technology, we can find and see advanced information which professionals can see in the previous. Therefore, I think that anyone can make a good result if we have interest about economy and its trend.
Personally, I think that a bottom of stock market is already passed if there are not critical bad news in the future. These reasons are on the following:
- Checked that U.S Federal Bank can get Junk-Bond
- Inflow of money for travel, because most people cannot take a trip
- In a view of macro-economy, increase of death will be a positive point because it can decrease government debt in the future
- Passed a peak of COVID19
- Fiscal stimulus leads dollar inflation, and its trend makes technical increase of stock market
However, there are few variables for another collapse.
- New bad news about Coronavirus (COVID19)
- Bankruptcy of big companies or continuously decrease of oil price
- 2 Quarter Guidance
Investment Result
Until now, earning rate is about plus 10 percent. Of course, there are no minus even though there is some deviation. There are stocks for short-term or long-term. Especially, if you invest in the foreign stock market, you have to properly consider about tax and commission fee.
I’m not the professional. However, with COVID19 situation, I started having interest in stock market, and considered that all people can invest in the same situation with development of IT. I hope that all people reading this article make a good result.
The following is my list I invested.
Australia
- Boral
- Treasury Wine
- Data#3
- People Infrastructure
- Smart Group
- Harvey Norman
- Estia Healthcare
United Kingdom
- 3i Group
- Greggs
- Moneysupermarket.com
- FDM Holdings
- Associated British Foods
United States
- Rent-A-Center
- Microsoft
- Cisco Systems
- Quovo
- Medifast
- Advanced Emissions Solutions
Closing
Even though discussion about a bottom of stock market will be continued, the certain thing is that now is the best timing to invest. There is no answer. I hope that all people reading this article make a good result in the future.
Related News to this article
- Wall Streeters Calling a Stock Market Bottom Couldn’t Even Predict the Crash
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Review of Investment for Foreign Stock Market as Starter: Australia/United Kingdom/United States