Dear Subscriber,

       We'd like to extend a warm "thank-you" to all of you who offered your input by filling out our survey on international income investing.

       The final results are in. We've compiled, categorized and ranked over 1,000 responses from readers like you . . . and we're thrilled to present you with the Top 10 list of your most common need-to-know questions . . . along with our answers.

       As you'll soon see, there are a broad range of interests out there . . . and we now have a clear vision of what we need to include in High-Yield International to make our new advisory as helpful as possible.

       Without further ado, we bring you . . .

Capturing Double-Digit Yields Overseas: 
Answers to Your 10 "Must-Know" Questions about International Income Investing

       Absolutely. In fact, if you invest wisely, then you can actually use international stocks to diversify your portfolio and smooth out your returns over time. 

       You may have heard at one time or another that investing internationally is a risky endeavor, better left to the professionals. But this is simply not the case. In fact, if your portfolio consists exclusively of U.S. stocks and domestic companies, then you're probably taking on far more risk than you realize. By diversifying your portfolio into foreign stocks, you can reduce your exposure to the slow-growing U.S. economy and smooth out your overall returns.

       Consider the case of U.S. real estate investment trusts (REITs). These securities have long been core holdings for millions of income investors. However, during the 2007 calendar year, the Dow Jones Composite REIT Index -- an index of all U.S.-based REITs -- lost nearly -30% of its value. Much of this decline can be blamed on a slumping housing market in the United States. By comparison, international housing markets were rock-solid. In fact, the Dow Jones Wilshire International Real Estate Index, which tracks international REITs outside the U.S., actually delivered a modest gain over the same time period.

       As this example shows, having exposure to only one country can lead to extremely volatile returns.

       Of course, we certainly wouldn't recommend that you invest all of your hard-earned dollars overseas. After all, the U.S. economy remains the world's largest and most powerful, and U.S. companies are dominant players in a variety of important industries. However, by setting aside a portion of your portfolio -- most experts recommend at least 20-30% -- exclusively for foreign stocks, countless academic studies have shown that you can simultaneously reduce your portfolio volatility and increase your overall returns. We regularly bring our readers a closer look at these types of academic studies in our High-Yield International newsletter.

       And we haven't even talked about dividends yet. Here again, if your portfolio is stuck exclusively in U.S. securities, then you're missing out on some incredible yields. How incredible? Just take a look at our chart, which shows average dividend yields as of the beginning of April 2008. With yields abroad simply beating the pants off of those in the United States, it's a mistake not to look internationally for a solid income stream.

       And keep in mind that these are just average dividend yields. In our High-Yield International newsletter, we cover only "best of breed" income securities -- companies and funds with yields of 8%, 10% . . . even 15% or more.

       But aren't foreign investments closely tied to the performance of the U.S. stock market?

       You may have heard the old adage "When the U.S. sneezes, the entire world catches a cold." But with the reemergence of a stable Europe and the rise of thriving economies like Brazil, Russia and India, this is not so much the case anymore. Even in light of the recent turmoil in U.S. markets, many international indices have continued to plow ahead, enriching savvy U.S. investors who have already smartly diversified their portfolios into overseas markets. For example, from April 2003 to April 2008, the S&P 500 delivered average gains of about +11% per year. While that return is certainly respectable, it lagged most foreign benchmarks -- stocks jumped nearly +21% per year in Europe, +27% in Pacific Asia, and +46% in Latin America over the same time frame.

       Having said all of this, when it comes to foreign companies, investors still need to consider a few special risk factors, including political risk, currency risk, and information risk. Let's examine each of these in turn.

       First, we have political risk -- turmoil in a company's home country can sometimes cause investors to flee. Although this is something to watch out for, we plan carefully to reduce this risk for our readers. We do so by limiting our coverage to nations with extremely stable political regimes. For example, in a recent issue of High-Yield International, we profiled high-yielding stocks in two of the most stable nations on the planet -- Australia and New Zealand. Why risk your money for an 8% yield in a global hotspot like Iran when you can score stable yields of 10% by investing in monopoly electric providers in Australia?

       Secondly, we need to consider currency risk -- if a foreign company's home currency declines vs. the U.S. dollar, then this could decrease the value of your investment. But here again, we think the risks are actually outweighed by the rewards. After all, over the past several years the U.S. dollar has been in a freefall against most foreign currencies, and legendary investors like Warren Buffett are now loading up on international securities in an effort to profit from a continued decline in the greenback. With this in mind, currency exchange fluctuations have actually been a boon to investors in foreign stocks. (See question #7 for further details on this topic.)

       Finally, there's information risk -- due to varying accounting standards, some foreign companies' financial information could occasionally prove to be unreliable. Although this is a legitimate concern, we're very mindful of this, and you can rest assured that we focus our coverage on nations with solid accounting practices and sound regulatory oversight. Also, keep in mind that even though U.S. accounting standards are excellent, corporate blow-ups are commonplace in the domestic market as well. Despite tough accounting laws, deceptive companies like Enron and WorldCom have cheated U.S. investors out of billions of dollars in recent years. By focusing only on solid companies with transparent accounting records, we do everything in our power to avoid these types of corporate disasters. After all, we're counting on these companies to fill our pockets with dividends too!

       Bottom line -- our subscribers can rest assured that we take all of these factors into account when researching our investment ideas. We never profile any investment idea unless we believe its dividend is SAFE, and unless the upside potential outweighs the downside risk. By applying careful research, diversifying our bets, and never forgetting the most important investment tool of all -- old-fashioned common sense -- our goal is to identify quality high-yield securities that you can count on to deliver stable dividends year-in and year-out.

       Up until recently, it was difficult -- and in some cases nearly impossible -- to find information on many foreign companies. But the good news is that thanks to the power of the Internet, investors now have a wealth of information at their fingertips, including in-depth financial data on companies that are based halfway around the globe.

       And not all of the companies we profile are obscure foreign firms. In fact, roughly half of the companies we cover in High-Yield International can actually be bought and sold on U.S. exchanges just as easily as regular U.S. common stocks. Many of these companies trade right here at home as American Depository Receipts (ADRs). Meanwhile, others are diversified international funds that are based in the U.S. -- in-depth data is therefore readily available to domestic investors.

       Also, when it comes to foreign-traded stocks, we focus our coverage primarily on nations with reliable accounting and strict securities regulations, including Japan, Germany, Canada, Australia, and New Zealand, among dozens of others. Companies that operate in these stable regions regularly file detailed financial reports, and they often supplement their official filings by making presentations to investment analysts and shareholders. They also deliver information through other traditional means, such as press releases and website postings.

       Of course, when it comes to more obscure foreign securities (some of which pay enormous dividend yields), information can sometimes be a bit hard to come by. However, in those cases, the good news is that our research staff at High-Yield International is here to do the dirty work for you. 

       We search far and wide, and we use an assortment of advanced research tools available to us (including dozens of fee-paid research tools, plus our priceless Rolodex of some of today's most powerful researchers and institutional investors) to find as much information as possible about these hard-to-find foreign income stocks. We then pass all of that data along to our valued subscribers. This is just one of the many advantages of being a subscriber to High-Yield International.

       Many international firms already meet U.S. accounting standards or their foreign equivalent. For example, foreign companies that trade on U.S. exchanges as American Depository Receipts (ADRs) must meet strict U.S. accounting requirements before they can list their shares on our domestic markets.

       Meanwhile, many other countries have improved their accounting standards and securities regulations dramatically over the past 20 years in an effort to attract foreign capital. Institutional investors in the U.S., Europe and Japan demand transparency and reliable financial reporting in exchange for capital. As a result, there is now more and better financial information on thousands of companies around the world than at any other time in history.

       Bottom line -- any company that wishes to attract international capital is forced to be open and honest with their records. So while some countries' accounting rules may not be the same as those in the U.S., the companies' books must past muster if they want to attract foreign investment.

       Furthermore, our international income investing search often takes us to other industrialized regions like Canada, the European Union, and Japan. In these industrialized countries, accounting standards are equivalent -- if not better -- than those in the United States, allowing our readers to lock in solid dividend yields and still sleep well at night.

       When we profile foreign securities that trade on U.S. exchanges, you can research these companies fairly easily -- the Securities & Exchange Commission (SEC) website contains easy-to-search financial filings for all such companies. In addition, most large-cap companies with U.S.-traded shares are covered by U.S. brokerage firms and other financial media outlets, so it's easy to get third-party analysis.

       When it comes to stocks that trade exclusively on foreign exchanges, most of these companies have websites with ample information, including in-depth financial reports. In many cases, you can also locate financial results directly on the website of a particular country's securities regulator. The International Organization of Securities Commissions website contains links to its member countries' websites.

       In addition, most financial data services (such as Bloomberg) and free financial websites (such as Yahoo! Finance) have at least basic information on many foreign companies. You can also look to the financial media in the company's home country or region. Articles often pop up on a simple web search. But in many cases, it's even more effective to find the name of a reputable newspaper or two in the region, then go to that paper's website and search for articles about a particular company.

       From time to time, we cover little-known foreign stocks that are extremely hard for individual investors to find. In these rare cases, we always make sure to provide you with a list of relevant website addresses and phone numbers to assist you in your research efforts. In short, we do everything we can to help you do your own due diligence on the companies we profile in our High-Yield International advisory.

       If you're a U.S. citizen, then you will incur the same capital gains, dividend and interest taxes from foreign securities as you would with U.S. securities. 

       However, there's a twist -- many foreign countries withhold taxes on dividend income paid to shareholders from other countries, including Americans. The withholding rate varies and can be as high as 15%. The good news is that you can normally recover the entire amount withheld by filing for a foreign tax credit (IRS Form 1116) on your federal tax return. Because you'll invest in foreign stocks through a U.S.-based broker in most cases, you'll receive notice of the amount withheld on your annual IRS Form 1099.

       Yes. However, the foreign-tax credit can't be used if you hold the foreign security in a tax-advantaged account. So you will want to assume a 10% to 15% foreign withholding of your dividend income if you're investing through a retirement account.

       Investors should note that even after accounting for this withholding, the investments we profile in the pages of High-Yield International offer much higher yields than your average U.S. stock.

       Yes, currency fluctuations do have an affect on international securities. If you've traveled abroad recently, then you probably understand the impact of a weaker dollar when it comes to purchasing power.

       In early 2002, it took about $0.83 to buy one euro. But by mid-April 2008, the euro had jumped in value to about $1.59. In other words, the same 200 euro per night Paris hotel room that cost $166 several years ago will now set you back about $318.

       Fortunately, what's bad news for the U.S. traveler can be great news for the U.S. investor. And one of the best ways to make money off the tumbling dollar is to purchase foreign securities.

       Suppose you invested 10,000 euros ($8,300) in a European stock in 2002. Even if the share price went nowhere, thanks to a falling dollar you could sell the shares, and as of mid-April 2008 those same 10,000 euros would be worth $15,900. That's about a +92% gain from currency fluctuations alone -- with no share price appreciation.

       Likewise, when the dollar falls, dividends paid in foreign currencies are worth much more when converted into U.S. dollars. Suppose you invested in a European stock that paid an annual dividend of 5 euros per share. Similar to the scenario above, this dividend would have been worth only $4.15 per share in 2002. But thanks to the falling dollar, the same 5 euro dividend would have jumped to $7.95 per share.

       Of course, the opposite is also true. Should the U.S. dollar rebound, then it could lessen the returns seen with international investing. However, we do not expect this to happen anytime soon. The dollar has been in a protracted bear market for years, and most analysts expect the greenback to continue to deflate against other currencies. While economists and political pundits debate the overall long-term impact of a weak dollar, at least one thing is clear -- it can be a boon for savvy income investors.

The Dollar's Downfall
       In one of Berkshire Hathaway's (NYSE: BRK-B) recent annual reports, we discovered that legendary investor Warren Buffett and his top lieutenants have been raking in huge profits by betting against the dollar. How huge? From 2003 to 2007, the company pocketed about $2.2 billion in profits from direct foreign currency forward contracts, mostly on the euro ($839 million), Canadian dollar ($398 million), and British pound ($287 million).

       And going forward, Buffett is expecting the dollar to remain depressed and has outlined other plans to boost his foreign currency exposure, such as the "ownership of foreign equities." Bottom line -- Buffett and other world-class investors are starting to look abroad for greater returns and higher yields, and we think individual investors should follow their lead.

       Because many of the securities we feature in High-Yield International are foreign companies that actually trade in the United States, these stocks can be easily bought and sold with a regular brokerage account. However, at certain times, our search for high yields leads us to securities that can only be bought on foreign exchanges. In this case, your current broker may or may not be sufficient to purchase these securities.

       To help resolve this minor inconvenience, all new subscribers to High-Yield International immediately receive an in-depth special guide entitled: "The Smart Way to Buy Foreign Stocks." This report details the ins and outs of buying securities abroad, including which brokers are best for this task.

       On a related note, we've also received a number of questions about international share prices. To help make things as easy as possible for our readers, we always list all stock prices and dividend payments both in their home currencies and in U.S. dollars. This way, you'll never get blindsided by uncertain exchange rates and currency fluctuations -- we make the whole process as transparent as possible, and we show you exactly how to lock in the tremendous double-digit yields we're seeing in many foreign stocks.

       Simply put, we profile high-yielding securities that have been issued by great companies. We also introduce you to diversified funds with safe dividends -- funds that are also poised to deliver solid capital gains thanks to booming economic growth in a particular area of the globe.

       What makes a company great? First and foremost, it must deliver solid, above-average dividends to its rightful owners -- its shareholders. We also look for firms with solid business models, sustainable competitive advantages, safe balance sheets, above-average growth prospects, and a history of steady (or increasing) dividend payments. Experienced management also matters -- this is especially true for funds. And we like to see the potential for growing dividends in the coming years -- we look for catalysts that could enable our companies to exceed investors' expectations and boost their dividends.

       And because we're primarily focused on income, we watch each company's cash flows like a hawk. After all, cash -- not earnings -- is what funds dividend payouts. Therefore, we lean toward businesses (and the funds that invest in them) that generate consistent, reliable cash flows. These include telecoms, electric utilities and real estate managers, among others.

       When it comes time to choosing the very best high-yield stocks, we also focus our attention on some of the fastest-growing areas of the world economy. Clearly, there is something to be said for casting a wider net, and investors who have done so have been well rewarded. Over the past 15 years, the benchmark S&P 500 has not once been the top-performing stock market worldwide in any given calendar year. In 2007, for example, it failed to even break the top ten -- the +5.5% total return of the S&P 500 wasn't even within shouting distance of, say, Ukraine's impressive +135% surge.

       Why have we seen such a huge discrepancy in stock market returns?

       As you no doubt already know, stock prices are heavily influenced by economic expansion and overall corporate profitability. And as the world's largest economy (with a gross domestic product (GDP) in excess of $13 trillion), it is virtually impossible for the U.S. to deliver the robust growth rates that it has posted in decades past.

       Fortunately, many other countries around the world are at far earlier stages on the economic development path and should see much higher growth rates than the United States for years to come. As you can see from our chart, while the U.S. economy is still dominant, it simply can't match the growth that is taking place in markets like China and India.

       Considering the link between economic expansion and equity prices, it's not surprising that U.S. stocks have struggled to keep pace with the rest of the world. With this in mind, if you don't have significant exposure to high-yielding foreign stocks, then you're missing out on an incredible opportunity to capture both high yields AND enormous capital gains.

       Our High-Yield Investing newsletter is written by experienced income investing expert Carla Pasternak. In that newsletter, Carla focuses primarily on domestic securities, with some coverage of foreign stocks. International securities represent a small part of Carla's coverage universe, but for more extensive coverage on other opportunities in faraway countries, you should look to High-Yield International.

       Our High-Yield International newsletter is written by veteran market researcher and international expert Nick Lanyi. In this newsletter, Nick focuses exclusively on international securities that pay enormous dividends. Due to the sheer number of income opportunities available around the globe, it is simply impossible to research and give adequate coverage to all of these foreign stocks in the pages of High-Yield Investing. In addition, with the assistance of several other members of our research staff, Carla Pasternak spends countless hours each and every week researching and analyzing the companies she profiles in her High-Yield Investing newsletter. 

       Rather than try to profile every attractive income option in the world and water down our analysis and coverage in High-Yield Investing, in late 2007 we decided to instead hire a new editor and to devote a full newsletter to this topic. That way, subscribers who love the in-depth analysis in High-Yield Investing will continue to receive what they like, while those looking for more international exposure will be able to use High-Yield International to identify more obscure, hard-to-find dividend payers around the globe.

       We understand that many investors may be wary of taking the plunge into the international income investing world -- and we know that High-Yield International is not be for everyone. 

       However, with average yields abroad simply beating the pants off of those in the United States, with economic growth soaring in countries like China and India, with the U.S. dollar plummeting, and with world-class investors like Warren Buffett now scrambling to invest overseas, savvy investors need to start looking abroad in search of solid, reliable income.

       With this in mind, I sincerely hope you'll decide to join us by subscribing to High-Yield International.

       To learn more about our premium High-Yield International newsletter, please visit this link.

Sincerely,

Paul Tracy
Chief Investment Strategist
StreetAuthority, LLC