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Stock Market
Interested in the stock market, terminology and other info? We have it all for you.
"Big Returns in a Small (Stock) World Foreign Funds That Focus On Midsize and Tiny
Firms Prove Almost Too Popular. In international investing, small is beautiful - at least for the
time being. With mutual-fund managers scouring the globe for a potential Google Inc, of Germany,
or a future Pfizer Inc. of India, midsize stocks have been on a tear. Considering that most
foreign-fund categories have been stellar performers, international small stocks still stand out.
These funds boat an average annual return of 39% during the past three years, compared with a 29%
return for international funds that focus on large companies, according to fund tracker Morningstar
Inc., of Chicago. On a five-year basis, the 59 foreign small-stock funds tracked by Morningstar
returned an average 16% a year, better than the 9% from international large-stock funds. Analysts
warn the landscape is changing. In a sign of how much money has poured into funds, a dozen of the
top 25 performing international small-stock funds identified by Morningstar no longer let new
investors buy shares. Some financial advisers see this as ominous. Fund managers typically close
their doors when the amount of money they have becomes so large that they have difficulty maintaining
their original investment strategy. International small and midsize stocks - companies averaging
about $1.8 billion in market value and usually less than $5 billion - have seen their prices rise
so fast that most analysts say they are no longer cheap, and many find them expensive. Because
there is less information available about small stocks, they tend to be riskier and more
susceptible to unanticipated big moves." - The Wall Street Journal
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