Are people concerned that they could lose all their gains, and some, if the dollar weakens.
The dollar is relatively strong at the moment but I can’t see this lasting:
Debt is spiralling out of control.
Inflation is rising.
And as I’ve said before China will overtake US gdp in the next decade. China can start demanding payments in Yuan. China has more than double US gold reserves.
Belt and road initiative has begun.
This is why is am very sceptical of US stocks…I feel the pound won’t take as much a hit where as the replacement of top dog china will have a more profound shake up on the US.
I say there is no need to worry too much about it. All you need is good risk management strategies. You can’t worry about things you have no control over. No one knows what tomorrow holds and trying to guess would be futile. The dollar may lose value, it may get stronger or it can just stay the same, who knows. You just need to be aware of current affairs and be able to act accordingly.
Just know that whatever happens to the dollar they will never stop printing more of it to prop up their economy. So any doomsday scenario might not even occur in our lifetime
I’m just more comfortable with the domestic market and the hedge from currency fluctuations. Sure these can impact the stock price but I don’t like buying at one rate and all my research and work has been outdone by a change in rates…maybe I’m overthinking
Dollar go’s up, pound go’s down yen is strong yen is week it is all within reasonable range from each other. Nevertheless I also was a bit worried since euro/dollar went from 1.07/1.10 tot the current 1.18 basically losing 0.08 per invested dollar since I’m in the euro. But in the financial crisis it has been 1.4 (cheap) and eventually crawled back up to a the 1.07 (expensive)
Fluctuations are to be expected, if you’re going long long-term or really short-term you probably shouldn’t worry. If you buyed beginning of the year and want to sell this year you should just hope the stock’s themselves will cover the exchange losses
Sounds like you have a good plan and it is always best to stick to it as long as it is working for you. Don’t expose yourself to unnecessary risk when you are already winning.
I just feel with domestic stocks the companies do the hedging on your part (futures etc) and should shield you from currency fluctuations. I know I also have my own bias but I feel the UK will come out strong post Brexit.
Unfortunately most companies are global. Take the FTSE 100, most if not all are exposed to fx risks as well. Remember fx rates always fluctuate and they will never stay the same. So in the end it may not matter which market you are exposed to there will be times when your portfolio is up and down and as long as you are in no hurry to liquidate your stocks it should be fine.
I’ve read the norwegian currency is very stable. They have no debt, not that I’m familiar with many Norwegian companies. The same can be said for Singapore.
