The Dollar Factor For Investing Overseas Instead of The U.S.

Investing overseas is done for investment diversification. The investor wants the benefits of growth opportunities globally. Those prospects may appear to be better to him than possible domestically.

But remember, currency moves are always involved. Will the dollar be getting stronger or weaker? If the dollar gets weaker, 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. (See the Earl J Weinreb NewsHole® comments.)