This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 Reasons to Invest in Foreign Small Caps and Profit From Global Growth

NEW YORK ( TheStreet) -- Over the past half-decade, the liquidity-driven bull market has been very generous to shareholders of blue chips such as Exxon Mobil, (XOM), IBM (IBM), Wal-Mart (WMT) and others. But the years ahead, based on demographics, should feature strong growth for foreign small caps such as Adecoagro (AGRO - Get Report), Audioboom, InterOil (IOC) and LiteBulb. Here are three reasons why investors should look to foreign small caps for future gains.

Many of the greatest money managers own foreign small caps as many are excellent stocks.

In addition to being a major shareholder in Exxon Mobil, IBM and Wal-Mart, last October legendary investor Warren Buffett bought Ray-Q Interconnect, an Israeli high tech with about 60 employees (IBM has 431,212, according to Finviz). That is the third Israeli company Buffett has bought. Billionaire hedge fund investor George Soros has done well with foreign small caps such as Adecoagro in farming, and InterOil an energy firm, among many others.

How Amazon Drones Will Become 'Normal as Seeing Mail Trucks'

Demographics Favor Foreign Small Caps

A report from McKinsey & Co., "Winning the $30 Trillion Decathlon," predicts that the great majority of global economic growth will come from emerging market consumers in the future. Small caps like LiteBulb Group, which sells consumer products in over 30 countries, are ideally placed to profit. So are social media firms that have a global appeal such as Audioboom, called the "YouTube of Radio." Adecoagro operates in the South American agricultural sector. InterOil is focused on oil and natural gas production in Papua New Guinea. Rosslyn Data RDT: London punches above its weight class in computer services related to The Cloud.

Foreign Small Caps Offer Much-needed Risk Management Elements

Exxon Mobil, IBM, Wal-Mart and many other American blue chips are great companies that have been great investments. But diversification is always imperative for any investor. Small caps with operations around the world allow for American investors to profit if the U.S. economy should stagnate. With U.S. gross domestic product falling by 2.9% for the first quarter of 2014, that is not just a theoretical concern in portfolio management.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AGRO $10.66 0.00%
IOC $33.47 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs