www.ProfitableInvestingTips.com – Deficit Investing The congress is engaged in the political equivalent of trench warfare over the budget deficit. For the astute investor the issue is deficit investing. Unless someone comes up with a magic potion the USA will have a substantial budget deficit for years to come. Deficit investing is the notion that the deficit will continue with its attendant loss of purchasing power of the US dollar. As the dollar becomes less valuable the long term investor needs to find investments that keep ahead of this loss of value even before considering a positive return on investment. So, what do we look for in deficit investing? One option in deficit investing is to invest in foreign stocks by way of American Depository Receipts. Another is to look for US companies like Citigroup, 3M, or Proctor and Gamble who have a huge international presence. What is a good investment overseas? It will be a company that sells products to growing markets, especially in Asia which is leading the way out of the recession. Likewise US companies that have a solid foothold in growing markets will likely offset US stagnation with overseas growth. Learning how to invest is a full time job in and of itself. Deficit investing requires the investor to find good companies with solid prospects and find these companies in countries whose economies are growing without excessive debt. Profits made by these companies come back home and are banked in the local currency …
