Tapping into the international market

The weakening U.S dollar has some turning to global investing.

The threat of the weakening U.S. Dollar has some investors looking overseas for the answer. According to Andrew Tischer, founder of Emeritus Capital Management, LLC in Bellevue, global investing is more important than ever.

“We are concerned with what’s going to happen with clients who have fixed income assets,” he said. “The market got beat up so badly, but in the last few months, it has slowly begun to repair itself. As the stock market begins to recover, it’s going to hurt people with bonds and fixed income type assets.:

Tischer noted that when interest rates go up, the price of bonds go down.

“This will eat away at people to see their bond portfolios go down in value so I began to wonder, how do you protect against that?”

With over a decade of experience with some of the largest firms on Wall Street, Tischer has turned his focus to international markets, foreign currencies and foreign equities.

“These are areas that are often overlooked or poorly managed by other advisors,” he said, pointing to foreign investments using foreign dollars as the solution to the declining U.S. Dollar. “I have an international bent to everything I do.”

The problem that many people face when investing internationally, Tischer explained, is that when they buy foreign stocks on the U.S. exchanges they are valued in U.S. Dollars.

“You need to have foreign currency exposure in addition to foreign stock exposure,” he said. “The answer is to buy foreign stocks directly on the foreign exchanges and in the local currency. These direct purchases are know as ‘foreign ordinaries.’ This is just another form of diversification. For example, put a portion of your funds in Australian Dollars and purchase stocks on the Sydney exchange or British Pounds and the London stock market.”

Tischer now divides his time between his firm in Bellevue and as a partner with a Tokyo-based investment firm.

“Investing internationally is just plain smart,” he said. “It’s all U.S-compliant and done through U.S broker-dealer platforms or third party custodians. People may be interested in knowing they have a good way to secure their money in this shaky economy.”

To learn more about Emeritus Capital Management, visit www.emeritus-capital.com .