Sunday, November 7, 2010

Investing Overseas With the Dollar

Investing overseas is done for investment diversification. The investor wants the benefits of growth opportunities that are to be gained globally. Perhaps those prospects appear to be better than those domestically.

Remember, currency moves are always involved. Will the dollar be getting stronger or weaker? If the dollar gets weaker, as is currently the case, such investments become more valuable as translated currency works in favor of the U.S. investor. (Travel overseas becomes more expensive.)

However, should the dollar get stronger, the reverse is true. Investments become less valuable as translated currency works against the interests of the U.S. investor.

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