Comments on: The Bright Side of the Declining Dollar http://genxfinance.com/the-bright-side-of-the-declining-dollar/ Helping a unique generation achieve financial independence. Thu, 09 Feb 2012 03:12:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: seo web service http://genxfinance.com/the-bright-side-of-the-declining-dollar/comment-page-1/#comment-135586 seo web service Thu, 17 Jun 2010 05:09:26 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-135586 You are right mr. Harrison Singapore Dollar and also Australian Dollar are a good choice for currency diversification. You are right mr. Harrison Singapore Dollar and also Australian Dollar are a good choice for currency diversification.

]]> By: Robert http://genxfinance.com/the-bright-side-of-the-declining-dollar/comment-page-1/#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: Jeremy http://genxfinance.com/the-bright-side-of-the-declining-dollar/comment-page-1/#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/the-bright-side-of-the-declining-dollar/comment-page-1/#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/the-bright-side-of-the-declining-dollar/comment-page-1/#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/the-bright-side-of-the-declining-dollar/comment-page-1/#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/the-bright-side-of-the-declining-dollar/comment-page-1/#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.

]]> By: Jeremy http://genxfinance.com/the-bright-side-of-the-declining-dollar/comment-page-1/#comment-36263 Jeremy Mon, 12 Nov 2007 15:46:58 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36263 Sara, that must be tough in your situation. Your husband's income is all paid in US dollars, correct? That puts you in a difficult situation where most of your income is in US dollars, while you're required to live overseas. Sara, that must be tough in your situation. Your husband’s income is all paid in US dollars, correct? That puts you in a difficult situation where most of your income is in US dollars, while you’re required to live overseas.

]]> By: ses5909 http://genxfinance.com/the-bright-side-of-the-declining-dollar/comment-page-1/#comment-36262 ses5909 Mon, 12 Nov 2007 15:37:36 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36262 If only I invested in foreign stocks /sigh If only I invested in foreign stocks /sigh

]]> By: Fecundity http://genxfinance.com/the-bright-side-of-the-declining-dollar/comment-page-1/#comment-36244 Fecundity Mon, 12 Nov 2007 14:49:56 +0000 http://genxfinance.com/2007/11/11/the-bright-side-of-the-declining-dollar/#comment-36244 Diversification is always good, though my husband might not agree right now. I have my retirement savings in Canadian equity, global equity and Canadian income funds. When my husband started his, he put his money into US equity since it was the one area my portfolio hadn't touched. With the fall of the US dollar relative the the Canadian (and most other currencies), my portfolio looks brilliant, and my husband's makes him want to cry. I try to console him with the fact that we're well diversified as a couple and that my gains make up for his losses, and that the US market will pick up eventually, but it's still depressing for his first real go at the mutual fund market. Diversification is always good, though my husband might not agree right now. I have my retirement savings in Canadian equity, global equity and Canadian income funds. When my husband started his, he put his money into US equity since it was the one area my portfolio hadn’t touched. With the fall of the US dollar relative the the Canadian (and most other currencies), my portfolio looks brilliant, and my husband’s makes him want to cry. I try to console him with the fact that we’re well diversified as a couple and that my gains make up for his losses, and that the US market will pick up eventually, but it’s still depressing for his first real go at the mutual fund market.

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