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Thinking of investing in stocks abroad? Try our local markets first!

^{Published on 2024-12-10 17:41:06 - Manila Bulletin}
 

• Every once in a while, a friend asks me about investing in foreign stocks. Which stockbroker do you use? How do you send money? Is it hard to open a dollar account?

The article from Manila Bulletin discusses the comparative performance and considerations of investing in Philippine stocks versus foreign stocks. It highlights that while the Philippine Stock Exchange (PSE) has shown resilience with a notable recovery in 2023, foreign markets, particularly in the US and Europe, have offered higher returns due to robust economic recoveries and technological advancements. The piece points out the benefits of diversification, noting that foreign stocks can provide exposure to different economic cycles, industries, and currencies, potentially reducing risk. However, it also mentions the challenges such as currency risk, geopolitical issues, and higher transaction costs associated with investing abroad. The article advises investors to consider their risk tolerance, investment horizon, and the need for portfolio diversification when deciding between local and foreign stocks, suggesting a balanced approach might be optimal for many investors.

Read the Full Manila Bulletin Article at:
[ https://mb.com.ph/2024/12/10/ph-stocks-vs-foreign-stocks ]

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