IF YOU have enough U.S. stocks -- and foreign investing tempts you -- how do you invest internationally?
One way is through mutual funds. As Goldman Sachs' booklet, Opportunities Around the World, suggests, "Many people don't have the time or knowledge of foreign markets to select individual stocks, but mutual funds provide professional management and diversification."
The booklet adds, "A major measure of foreign stock markets is their historical performance. In fact, the U.S. market ranked among the 'Top 3' performers only twice in the last 10 years."
Looking ahead, the London-based Economist states, "Several things could dull the U.S. rosy stock outlook. One is that economic growth might pick up in Japan, with higher interest rates sucking huge pools of Japanese savings from U.S. markets and bringing savings back home."
Forbes, Aug. 25, says, "Most foreign markets are cheaper now than ours. Latin America's market stands at 14 times earnings, Europe, 18; both well below a 23 P/E in the U.S."
International funds with good records include: Templeton Foreign, Pioneer International, Putnam International New Opportunity, Goldman Sachs International and Templeton Developing Markets.
Another way to invest internationally is through U.S. companies with huge foreign exposure, such as General Electric, Coca-Cola, Intel, Minnesota Mining, McDonald's, Avon Products, etc.
Speaking of Avon, Money, September, says, "Avon is finally glowing, thanks to exploding global sales. Sales force has expanded to China, Russia, Poland and India."
FOREIGN FOCUS: Worth magazine lists Avon under "10 Stocks to Consider." ("Overseas sales booming; aggressively buying back its stock; low P/E ratio.")
"Best-performing stock markets, 1986-1995 were, in order, Switzerland, Finland, Hong Kong, United Kingdom, Austria, Belgium, Japan, Spain." (Morgan Stanley Capital International Research)
"More than one-fourth of the earnings of the companies in the S&P 500-stock index come from abroad." (Kiplinger's Personal Finance Magazine, August)
"Wherever you go, whether it's China or Indonesia or Europe, people want to wear blue jeans, eat McDonald's hamburgers and drink Coca-Cola." (Same Kiplinger's)
Pub Date: 8/27/97
