Comments on: The Bright Side of the Declining Dollar http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/ Helping a unique generation achieve financial independence. Fri, 19 Mar 2010 11:46:58 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Roundup for week of 11 November 1007: Colonial Williamsburg edition at Mighty Bargain Hunter http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-38874 Roundup for week of 11 November 1007: Colonial Williamsburg edition at Mighty Bargain Hunter Mon, 19 Nov 2007 08:14:21 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-38874 [...] Generation X Finance illuminates the bright side of a declining dollar. [...] [...] Generation X Finance illuminates the bright side of a declining dollar. [...]

]]> By: TGIF Link Roundup for 11-16-2007 ~ Smart. Healthy. Rich. http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-37855 TGIF Link Roundup for 11-16-2007 ~ Smart. Healthy. Rich. Fri, 16 Nov 2007 16:57:52 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-37855 [...] The Bright Side of the Declining Dollar - Many of us are quick to worry about the declining value of the dollar. This article takes the other viewpoint, and points out some of the advantages of the dollar’s demise. (from Generation X Finance) [...] [...] The Bright Side of the Declining Dollar – Many of us are quick to worry about the declining value of the dollar. This article takes the other viewpoint, and points out some of the advantages of the dollar’s demise. (from Generation X Finance) [...]

]]> By: Personal Finance Blog Review: Generation X Finance http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-37634 Personal Finance Blog Review: Generation X Finance Fri, 16 Nov 2007 05:39:38 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-37634 [...] I’m sure he and I will criss cross on a few topics over the next couple years, although he tends to provide more detailed information, on named investments, than I do (at least to date). Another thing I like is how many of his pieces deal with current market events, i.e. The Bright Side of the Declining Dollar. [...] [...] I’m sure he and I will criss cross on a few topics over the next couple years, although he tends to provide more detailed information, on named investments, than I do (at least to date). Another thing I like is how many of his pieces deal with current market events, i.e. The Bright Side of the Declining Dollar. [...]

]]> By: Robert http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-37390 Robert Thu, 15 Nov 2007 16:19:48 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-37390 Some of those other markets can be pretty volatile, too. The Chinese markets in particular have been bouncing around like a yo yo. Some of those other markets can be pretty volatile, too. The Chinese markets in particular have been bouncing around like a yo yo.

]]> By: Poll: With the Weak U.S. Dollar, What Action Are You Taking? : Generation X Finance http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-37368 Poll: With the Weak U.S. Dollar, What Action Are You Taking? : Generation X Finance Thu, 15 Nov 2007 15:12:32 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-37368 [...] to my RSS feed or sign up for free email updates. Thanks for visiting! Earlier in the week I discussed the declining dollar and one possible way to take advantage of the situation. The comments to that post were varied, [...] [...] to my RSS feed or sign up for free email updates. Thanks for visiting! Earlier in the week I discussed the declining dollar and one possible way to take advantage of the situation. The comments to that post were varied, [...]

]]> By: Jeremy http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36569 Jeremy Tue, 13 Nov 2007 15:40:07 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36569 While I think the dollar will eventually rebound, it won't happen overnight. Even if it does start to come back, it has a long way to go before it would put us in a reverse position where it would actually diminish foreign returns. And as was already mentioned above, even if the dollar does begin to recover a bit, the low correlation with the domestic markets can still far outweigh the differences in exchange rate. The current value of the dollar just happens to amplify those returns. While I think the dollar will eventually rebound, it won’t happen overnight. Even if it does start to come back, it has a long way to go before it would put us in a reverse position where it would actually diminish foreign returns.

And as was already mentioned above, even if the dollar does begin to recover a bit, the low correlation with the domestic markets can still far outweigh the differences in exchange rate. The current value of the dollar just happens to amplify those returns.

]]> By: Stock Advice http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36466 Stock Advice Tue, 13 Nov 2007 06:23:47 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36466 The weak dollar has been great for investing in foreign stocks, but it seems like it's about time to start bringing money back to the US. The dollar will probably continue to slide some but it's better to anticipate the coming bottom and start moving out of foreign investments. The weak dollar has been great for investing in foreign stocks, but it seems like it’s about time to start bringing money back to the US. The dollar will probably continue to slide some but it’s better to anticipate the coming bottom and start moving out of foreign investments.

]]> By: Llama Money http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36305 Llama Money Mon, 12 Nov 2007 17:30:30 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36305 This is a good lesson for the future. However, investing in foreign stocks / funds now would be extremely risky. If / when the dollar reverses it's slide, that means your foreign investments will be worth less in dollars. In other words, it's great to invest in foreign areas when the dollar is strong. Not so much when it's weak. This is a good lesson for the future. However, investing in foreign stocks / funds now would be extremely risky. If / when the dollar reverses it’s slide, that means your foreign investments will be worth less in dollars.

In other words, it’s great to invest in foreign areas when the dollar is strong. Not so much when it’s weak.

]]> By: rstlne http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36278 rstlne Mon, 12 Nov 2007 16:21:53 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36278 I've had foreign stocks, both in mutual funds and in individual stock picks, for 11 years already. Considering that half of the global market cap falls outside of the US, it'd be silly to restrict your investment choices to just this country. However, if you think the US$ is going to go down even more, a better choice would be precious metals and precious metals mining stocks. Why? Because foreign countries don't like to see their export industries suffering from their strong currencies either and their governments will intervene at some point. For example, I think the EU will intervene when the euro is at $1.50. So foreign currencies alone won't protect you from dollar devaluation. I’ve had foreign stocks, both in mutual funds and in individual stock picks, for 11 years already. Considering that half of the global market cap falls outside of the US, it’d be silly to restrict your investment choices to just this country. However, if you think the US$ is going to go down even more, a better choice would be precious metals and precious metals mining stocks. Why? Because foreign countries don’t like to see their export industries suffering from their strong currencies either and their governments will intervene at some point. For example, I think the EU will intervene when the euro is at $1.50. So foreign currencies alone won’t protect you from dollar devaluation.

]]> By: David http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36265 David Mon, 12 Nov 2007 15:47:43 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36265 The converse is also true, foreign investors get less return on US investments. The converse is also true, foreign investors get less return on US investments.

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