The secret is investing in ADRs, American Depository Receipts. ADRs which stands for American Depository Receipts trade just like regular stocks but represent the ownership of shares of a foreign company trading on U.S. financial markets. Buying shares of companies in other countries can be very complicated and very risky not to mention they trade at different prices and currency levels that is why Investing in ADRs are great .
During the terrible financial crisis of 2008, when major stock markets were crashing around the world, surprisingly ADRs, American Depository Receipts still performed nicely and earned some nice gains.
It is important before investing in an ADRs,American Depository Receipts of a particular country to look at the financial stability of that country. For example, how has the stock market of that country been performing lately, has it been in an uptrend, or downtrend? Sometimes strong global demand for natural resources drive a countrys stock market up, and its ADRs go up as well.
