Finding the Hot Spots is another excellent book from Wiley. David Riedel makes a convincing case at both the macro and micro levels for global investing. He argues that portfolio managers should adjust their exposure to international stocks to both diversify and minimize risk. This may sound counterintuitive as international investing is usually associated with an increase in risk, but Riedel feels that the global investment climate deserves reconsideration.
Riedel’s advocacy for international investing falls naturally into place by asking and answering economic questions which are specific to international markets. He shows how the government and regulatory environment can create some investment opportunities and block others. He also explains what future economic scenarios he views as seemingly inevitable that could push down the value of the dollar, improving opportunity in foreign markets along the way.
By the end of the book I had to rethink some of my assumptions about the risks associated with international investing. While it should be understood that global investing involves the risks associated with currency valuation, political instability, and regulatory problems, some of these may actually present opportunities. If you are relatively new or wish to demystify global investing, consider reading this book.
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