When risk is highest, future returns are also higher.  Europe seems like a risky place to invest right now.  Stock valuations are lower.  This makes Europe a potentially profitable place to invest.  If the risks do not materialize, then the pay off can be great.  It is however important to stick to a predetermined allocation to European stocks.  Emotions and speculation must not be part of the equation.

A good investment vehicle for buying stocks in Europe is a Vanguard European fund.  This will cover most of the stocks in the region at low costs according to market capitalization.  Alternatively, you can invest in Europe through a more broad fund like the Vanguard Total International Fund.  This also includes emerging markets and Asia.  Jumping in and out of investments based on perceived risk is a sure way to get lower future returns.  Stay the course and have a plan.

There are however reasons to add emerging markets to a portfolio as a percentage of your overall foreign stock exposure.  Remember that adding risky assets to a portfolio which are not correlated actually increases the returns of a portfolio with less risk.  I am not in favor of investing in a single country fund like a Brazil ETF.  The risk of a single country fund is not rewarded.  The risk can be diversified away by adding other countries.

A better way to invest in emerging markets would be one that includes all the emerging market countries.  Vanguard has a low cost fund and ETF that covers the emerging markets according to market capitilization.  The fund from Vanguard allows lost cost diversified exposure to the emerging markets.  Alternatively, you can invest in a fund that includes all the international markets like the Vanguard Total International Fund.

Emerging markets can be anywhere from 20-50% of your allocation to foreign stocks.  You need to decide just how much volatility and risk you can stomach.  Emerging markets are some of the most volatile stocks.  They can jump by 50% one year and drop the same the next year.  However, their movement in relation to US stocks is often not perfectly correlated.  This can definitely add a benefit to your portfolio.

The best way to gain exposure to foreign markets is through a diversified fund including multiple countries.  Even better would be one that also included companies of various sizes.  My favorite fund is the total international fund from Vanguard.  This has rock bottom costs compared to the average in the class.  It is diversified across most of the markets  outside the US.  It includes companies of various sizes.

Foreign stocks also provide a way to get additional diversification in the form of currency exposure.  Since foreign stocks are bought in foreign money, their exchange rates are constantly fluctuating.  This can have a positive or negative impact on returns depending on the position of the dollar.

So foreign stocks are definitely needed for a well diversified portfolio.  There are inexpensive instruments available to capture the full returns minus miniscule costs.  For those who live and work in the US this is especially important.  Since a poor economy and stock market in the US can also effect your employment and value of your house.  Investing outside the US also provides a hedge.

The two most popular vehicles are exchange traded funds and mutual funds.  Exchange traded funds have lower expense ratios and trade on the exchanges all day.  Vanguard offers some of the most diversified and low cost fund options out there.  My favorite fund is the total international fund.  This fund has rock bottom expenses of .2% and included most of the world outside the US.

This fund also includes both domestic and emerging markets.  Large, mid and small capitalization stocks.  The fund distributes investments according to their weight in the markets outside the US.  Another important element is that you are also diversifying currency.  Since the stocks are bought with foreign currency, you are also taking on currency risk.  Since currency exchange rates are always changing, this can be either a positive or negative impact on your returns.

I do not like single country funds very much because you are taking on much more risk with one country.  Since this risk can be diversified away, you are not adequately compensated for taking this risk.  At most, I would split up foreign stock investing into emerging and developed funds, or by region.  I would also stay away from individual stocks since this can be expensive and difficult to do at the current time.  Not to mention you are taking on single company risk which can be diversified away.

In the past foreign stocks were difficult to invest in since there were few diversified inexpensive products available.  These days, it is possible to get the entire world outside the US in one neat ETF or mutual fund at rock bottom costs.  Vanguard offers a low cost total international fund and ETF.  This is a great addition to most portfolios.

The question often becomes how much do you add?  You should split up stock and bonds into percentages based on your need, ability and willingness to take risk as is often said on the popular bogleheads forum.  Once you determine a percentage of your portfolio you want to allocate to stocks, you then need to think about how to break it up.

Most people will recommend 20-40% foreign stock allocation.  This is based on back tested data taking into account returns and volatility.  The stock market is forward looking so it is unclear if this range will be optimal for the future.  The US comprises about 40-45% of the world stock market.  So this may be an appropriate percentage for some.  Others may want to overweight the US for various reasons.

Some argue that most large corporations in the market give you exposure to foreign because they do business outside the US.  I argue that it is better to invest at least 50% of your stock allocation in foreign.  Since you work and live in the US, you want to diversify outside the US.  If the US does poorly in the future, it is possible that you may encounter difficulties with employment and your house will be worth less.

If you diversify outside the US, conditions may be such that the rest of the world does better than the US.  In this case, your portfolio may do better than someone who is mostly invested in the US.  If you wait too long, it will be too late.  I like to think of this as the same principle as investing in company stock.  Do not do this because a company failure will mean failure of your portfolio and loss of your job.

If your mortgage application has been denied, you may have a record with some blemishes.  Perhaps a bankruptcy, a foreclosure in the past, or other dings to your credit history.  In some cases, it is simply a case of poor documentation.  This can be due to not meeting the deadlines imposed by the lenders, or simply not having the required documents available.

The documentation required these days is absurd.  Every deposit must be explained into the account you are using to pay for the down payment.  Your credit history is checked with a fine tooth comb.  If you are self employed or an independent contractor, you may not have a steady stream of income and face some problems.

In all cases, it is important to work a knowledgeable, personable and responsive broker who can walk you through the process.  Anticipate any problems ahead of time.  Know the lender well and what their requirements are.  Offer alternatives if things do no work out for you.  They should also offer practical tips on how to improve your application if you are denied.

Much of the paperwork and documentation can be handled via email or fax.  There is rarely a need to meet face to face for a refinance.  Since the lending standards have become much more strict, it is important to find a mortgage broker who is helpful and responsive.  Someone who will make a difficult process go smoothly.  There are many surprises along the way as far as needing additional documentation.

A good mortgage broker will anticipate many of these requirements, and alert you in advance.  You do not want to be told the day before your rate lock expires that you need to provide documentation for every deposit you have made into your checking account over the last 3 months.  Details should be handled in advance and anticipated.

A good mortgage broker will be proud of their work.  They will want future referrals.  They will explain the process to you and make it as smooth as possible.  The fewer surprises the better.  Ask around on forums related to real estate or better yet, ask family members if there is someone they liked working with.  Believe me, if you get a broker who is not helpful, the process can be truly hellish.

One of the more practical points about compound interest is that the earlier you start the greater the effect.  For example, an investor who invests 5k a year starting from 25-35 at 8% interest will have 787,175.89 at age 65.  Consider another investor who starts investing 5K at age 35 and does so for the next 30 years.  His balance at 8% return will be 611,729.34.  What a difference!

A quick way to estimate returns is the rule of 72.  Simply divide 72 by the percent return and that is how long it will take to double your money.  So if the return is 8%, you will double your money in 9 years.  So over a 30 year working career, you can potentially have your money become 8X greater with compound interest.  Another point is that it is important to reinvest dividends and interest so that this money has the chance to compound also.

So start saving as early as you can.  Invest in low cost index funds for many years.  And let the magic of compound interest take its course.  You will be surprised how much you can potentially have years down the line when you want to retire and have more time for things you have always wanted to do.

I argue that this is an indicator of improving economic conditions.  This is clearly unscientific and purely anecdotal, but it correlates fairly well with more objective measures such as unemployment rate going down, GDP going up, stock market improving, etc.  This is a personal barometer of sorts that can be used to gauge the economy.

If I go later in the year and the wait time drops back down to 0, then is it time to pull money out of the market?  Probably not.  This is clearly a rough and unscientific indicator.  Probably just as good as Bangladesh butter production correlating with S&P 500 returns.  But my personal 3 year experience does correlate with more objective indicators.

I have not paid as much attention to other restaurants.  And perhaps the wait time increase is a reflection of increased advertising or more food specials?  I am not sure.  But I thought I would bring this interesting phenomenon to attention.  Perhaps others can make similar observations as they frequent different restaurants around their town.  Now if wait times go back to 0 minutes, does this mean a double dip recession is coming?

If there are blemishes on your record, you are in for some trouble and headache.  Without steady income, lenders will be hesitant to lend to you.  This can be a particular problem if you are an independent contractor or self employed.  Lenders will want documentation of income in the form of pay stubs and bank statements.

Lenders are very strict about how much you want to borrow and what the value of your house.  If your house is worth less than the loan, forget about it.  This is especially important when you refinance.  Often houses in dropping markets can be even more difficult to qualify for a mortgage.  And many markets these days are dropping markets.

Better have top notch credit scores.  Otherwise you will not qualify or you will receive poor rates.  Any blemishes will have to be explained. There is a mountain of documentation that is needed these days.  Certainly a mortgage broker or professional can help you through the process.  The process can be lengthy with tons of paperwork and documentation needed.  Overall, this is probably a good thing considering what happened to all the subprime mortgages in this country.