The safest
investments have always been considered blue chip stocks and U.S. government
securities. But in the past 5 years there has been a change in thinking due to
the uncertainty of the markets and many investors have begun to look for
alternative investments. The search for alternative investments led many
investors to take notice of which nations maintained certain levels of
stability throughout the global economic downturn. Asia and Latin America have
received some investment due to their developed and modernized stock exchanges.
However, the
same investors also took notice of the economic stability or rather
independence of African nations. The question was raised: how do I invest in
those markets? Not all investors are able to set up a business and partake from
the physical transactions of business in those nations. With that being said
here is one way to take part: African ADRs.
ADR stands
for American Depository Receipt. It is a certificate issued by an American bank
that represents a proportion of shares in a foreign company and is traded on a
U.S. stock exchange. By being traded on a U.S. exchange they can be purchased
through any major stock brokerage firm such as Scottrade, etrade, Fidelity, or
TDameritrade. So, diversifying your
portfolio and taking advantage of the growing economies in developing countries
is much easier than many people thought.
Here’s a
list of African ADRs:
Here’s a
full list of global ADRs:
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