I took advantage of Ed's Black Friday offer and added the US service to my existing subscription. It's the first time I have branched out into in depth data from other geographies although I have bought US shared before based on the limited data my broker can provide.
At first glance i'm overwhelmed and quite excited by what I find.....it seems a bit like its a sea of green, green stockranks as far as the eye can see!!
Every screen I run brings up a load of shares that I have never heard of but which have really good Stockrank characteristics and look at first glance to be potential winners. Almost to the point where I have started to get suspicious!
It could just be that my screens are doing a good job of selecting good candidates or it could be that there is a lot of momentum in the US market that is skewing the results? or that there is just so many new shares available to me that it just feels like a lot of high stockranks when really the proportion is the same as in the UK and europe. How can I tell if the proportion is similar?
I'm interested in how others are playing the US market at the moment. For Example...
Pretty much every bank in the US has a high green Stockrating (and there are a lot of banks in the US!), anyone particularly investing a lot in US banks or is there some reason I don't know about why that would be a bad idea?
Would people avoid foreign (to the US) listed shares on US markets the same way I would avoid foreign companies listed on AIM? Is an Israeli stock in a US market a better or worse bet that an Israeili stock on AIM? What about Chinese companies?
Anything different in the size of the market cap that you would look at. Normally I look for small caps between 50M and 950M but are smaller shares more liquid in the US and so should my boundary go down?
So many stocks to look at, so many questions and thoughts! All help welcomed!
Yes there are quite a few issues buying overseas shares, some you may not realise until you do it. A few I can think of are:
1) Costs of buying/selling will be higher, some brokers have high FX charges plus other charges.
2) Some shares will not be available or only by telephone dealing which can be much more expensive.
3) There maybe tax issues and forms to complete.
4) Your broker may offer less facilities, HL do not have any stop losses or auto trading on foreign shares.
5) There is of course risk from currency movements, buying now is about 15% more expensive post Brexit.
6) There is generally less information available, no reviews or little discussion on here.
7) Some shares have high valuations, one I was looking at is Sw.Fr 850 about £675, so buying the same amount in each share may not be possible.
8) Historical information is more limited, EU prints only go back to March 2016.
Do the directors dealings on Stockopedia show on foreign shares, I have yet to find European shares with any?
