Every now and then, investors like to gamble on what they think will be the next hot stock. But many are left wondering which country to invest in. So how do the prices of foreign stocks compare to American stocks?
The United States is not the only country in the world, and owning a global portfolio is increasingly becoming common among investors. The US may have its own problems, but other countries around the world are also struggling with their own economic situations.
This article, we will breakdown and compare some of the major economic factors both domestically and abroad that investors should consider before deciding where they want to invest:
International Unemployment Rate: The unemployment rate in the United States currently is at 8.3 percent and is expected to rise to 9.2 percent by the year's end, a nearly two percentage point increase from last month. In Japan, the unemployment rate stands at 6.7 percent — actually 1 percentage point below the US rate — however, recent data shows Japan's unemployment rate is expected to rise by about 2 percentage points by this fall.
A question that often arises when thinking about international investing is regarding the impact that international economies have on the US economy, given their individual differences in rates of inflation and growth. While the US and Japan share similar economic characteristics, the growth rate in the US is much slower than in Japan – up roughly 1.6 percent from last year, whereas Japan's growth rate is up 3.2 percent.
When looking at inflation, it is also important to take into account that inflation rates are calculated differently between countries. Calculated differently for different countries, inflation rates can be useful when deciding where to invest but may be misleading as a guide to overall economic conditions.
The United States is not the only country in the world, and owning a global portfolio is increasingly becoming common among investors. The US may have its own problems, but other countries around the world are also struggling with their own economic situations.
This article, we will breakdown and compare some of the major economic factors both domestically and abroad that investors should consider before deciding where they want to invest:
International Unemployment Rate: The unemployment rate in the United States currently is at 8.3 percent and is expected to rise to 9.2 percent by the year's end, a nearly two percentage point increase from last month. In Japan, the unemployment rate stands at 6.7 percent — actually 1 percentage point below the US rate — however, recent data shows Japan's unemployment rate is expected to rise by about 2 percentage points by this fall.
A question that often arises when thinking about international investing is regarding the impact that international economies have on the US economy, given their individual differences in rates of inflation and growth. While the US and Japan share similar economic characteristics, the growth rate in the US is much slower than in Japan – up roughly 1.6 percent from last year, whereas Japan's growth rate is up 3.2 percent.
When looking at inflation, it is also important to take into account that inflation rates are calculated differently between countries. Calculated differently for different countries, inflation rates can be useful when deciding where to invest but may be misleading as a guide to overall economic conditions.
