Welcome to the world of the summit International stocksThe year 2024 holds great promise for smart investors. Diving into global markets offers more opportunities than just sticking with local stocks.
This article reviews the 10 best foreign stocks to buy now. Despite predictions of a recession, the US economy continues to grow, showing a 4.9% increase in GDP in the third quarter of 2023, the fastest in two years.
But inflation reduced real disposable income by 1%, and the personal saving rate fell dramatically. On the other hand, other advanced economies such as Germany and the United Kingdom did not perform similarly.
Germany may face a recession, with an expected GDP contraction of 0.4% in 2023, yet it is expected to overtake Japan as the world's third-largest economy. On the other hand, Japan's GDP growth remains stagnant, and China, the world's largest economy per capita, is struggling in the post-Covid-19 phase.
China is facing challenges resulting from the policy of eliminating the Corona virus and the turbulent real estate sector, which has led to the issuance of a massive bond worth $137 billion to stimulate the economy and manage the deficit. These global economic conditions create a complex backdrop for investors considering them Foreign stocks In 2024.
Top global stocks that will rise
Investors are increasingly looking to emerging markets for long-term gains. These fast-growing regions are full of companies that have large market capitalizations and offer high dividend yields.
From the vibrant United States to the bustling markets of Asia, the world offers a wide range of investment options. Whether you work for large, well-known companies or newer, innovative companies, understanding your international stock options is key.
Tools like Vanguard Total make it easier to navigate these diverse markets, helping you make choices that fit your investment goals.
Get ready to explore the best global stocks of 2024 and embark on a rewarding global investment journey.
Top international stock watchlist
Ferrari Nevada (racing)
section: Consumer cyclical
Work country: Italy
Ferrari, the iconic Italian luxury sports car maker, has demonstrated strong brand loyalty and pricing power. Known for its exclusive vehicles and rich history in motorsport, Ferrari has expanded its portfolio to include lifestyle products, strengthening its luxury status. The company's strategic focus on limited production maintains its brand exclusivity and supports strong pricing.
Yum China Holdings Corporation (YUMC)
section: Consumer cyclical
Work country: China
As the largest restaurant company in China, Yum China operates popular brands such as KFC, Pizza Hut, and Taco Bell. With a deep understanding of the Chinese market, innovative menus, and strong digital presence, Yum China is well-positioned to meet the needs of China's growing middle class and growing demand for quick-service restaurants.
Ambev SA (ABEV)
section: Consumer defense
Work country: Brazil
Ambev, a subsidiary of Anheuser-Busch InBev, is a dominant player in the beverage sector in Latin America. The company boasts a variety of beer and soft drink brands. Ambev's strong distribution network and continuous innovation in products and packaging make it a strong player in the region's consumer market.
Nestlé SA (NSRGY)
section: Consumer defense
Work country: Switzerland
Nestlé is the world's largest food and beverage company. Its diverse product portfolio includes leading brands in coffee, water, pet care and baby nutrition. Nestlé's commitment to innovation, sustainability and adapting to consumer trends supports its long-term growth.
Accenture PLC (NYSE:ACN)
section: information technology
Work country: Canada
Accenture plc (NYSE:ACN) is an information technology company that provides companies with consulting services. The company is currently busy expanding its international portfolio, having acquired a Canadian infrastructure consulting provider in October 2023.
After looking at 910 hedge fund portfolios for the second quarter of 2023, Insider Monkey discovered that 56 of them were Accenture plc (NYSE:ACN) investors. Guardian Capital's GuardCap Asset Management owns the largest stake, valued at $576 million.
Coloplast A/S (CLPBY)
section: health care
Work country: Denmark
Coloplast specializes in personalized medical care products and services related to stoma, urology, excretion and wound care. The company has a reputation for quality and innovation, providing products that enhance the quality of life for its users.
Novartis AG (NVS)
section: health care
Work country: Switzerland
Novartis is one of the largest pharmaceutical companies in terms of market capitalization and sales. The company focuses on patented medicines in areas such as cardiovascular, neuroscience, oncology and immunology, with a strong pipeline of potential new products.
Canadian National Railway (CNI)
section: Industries
Work country: Canada
Canadian National Railway is a leading transportation and logistics company, with a railway network spanning Canada and Central America. CNR's comprehensive range of services makes it a critical component of the North American supply chain.
Taiwan Semiconductor Manufacturing Co., Ltd. (TSM)
section: technology
Work country: Taiwan
TSMC is the world's largest independent semiconductor foundry. The company plays a pivotal role in the global semiconductor supply chain, providing advanced manufacturing capabilities and a wide range of technologies to customers around the world.
How can I trade foreign stocks?
You can Investing in foreign stocks In the United States in several ways. For example, you can invest in funds with an international focus. The simplest and safest way is to invest in ETFs or mutual funds that include global companies.
For example, the Vanguard FTSE Europe ETF gives you stakes in more than 1,300 European companies, while the iShares MSCI Emerging Markets ETF provides exposure to more than 1,200 companies from countries such as China, India and Brazil.
Another option is the iShares PHLX Semiconductor ETF, which includes U.S. companies and foreign chip makers such as Taiwan Semiconductor Manufacturing Co.
You can buy shares of foreign companies listed on American stock exchanges such as Nasdaq or NYSE. These shares are often in the form of ADRs, which represent a specific number of shares from the company's home market. For example, an ADR share of iQiyi on NASDAQ is equivalent to seven common shares on the Chinese Stock Exchange. Some ADRs are available over-the-counter (OTC) but may not provide the same shareholder rights as shares from the company's home market.
Get direct international access through a broker
Another way is to use a brokerage to directly access the stock exchange where the company is listed. You can open a global account with a US brokerage company or create an account in the target country. However, this approach may involve additional fees, taxes, and regulations, and your investment will not be protected under U.S. securities laws. There may also be challenges in seeking legal remedies through foreign courts.
What risks come with investing in international markets?
Although returns on investing in international stocks can be high, there are some risks to take into consideration. Political instability and other developments in the country can reduce the value of an investment, and currency values can fluctuate.
Especially in Developing marketsYou may have relatively poor insight into the company's business operations and other factors that influence valuations.
In addition to political instability, international markets often experience significant impacts when economic conditions worsen. High levels of inflation, rising interest rates, the Russian invasion of Ukraine, deteriorating US-China relations, and other factors have combined to weaken global growth prospects, and some regions are facing severe headwinds.
