Having researched about it quite a bit, I think a good strategy for building a diversified portfolio is real estate (either REITs or apartments of condos or commercial) in foreign countries.
Stock markets in various countries tend to move together, but not their real estate markets. One reason for it is that real estate is not as liquid as the stock market and it has much harder accessibility. In the long run, the real estate is the definitive index to the prosperity of a country, but in real estate you can find local markets (such as NY) where the market has nothing to do with over all real estate or the economy or vacation/university markets.
The only watchout factor is a) you have to find a way to access those markets b) you have to find a way to reliably get back the investment :)
Wednesday, June 20, 2007
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