I'm starting a new thread on this... Some of the things that Guss wrote were correct. But I'm going to give you my opinion why I don't think the average person, with an income of less then $100K, should invest in FX.
1) You are breaking the most fundemental rule about investing if you buy Euros now. You are buying high. 2) Bad risk-reward ratio. The USD-EUR rate was .8313 on 8/3/2004. Today it's about .7743. That is roughly a 6% gain for the EUR. The SP500's gain in the same period is a little shy of 8%. Now factor in the bizzare tax codes and the risk you take on my investing outside the US. I don't think those numbers justify especially if you consinder the minimum deposits required for FX trading compared to opening up an IRA or some other tax effecient vehicle. 3) Taxes. 4) Time Horizon. If your goal is investment, nothing, I mean nothing, over a 10 year period in the history of modern capitalism returns more then US equities. This will eventually change, but it doesn't happen over night. It's difficult to give broad reasoning why I think one should or shouldn't invest in certain products. Just be sure to keep your goals and time horizon in mind. EV your assets and PV/FV it out. Make sure you manage risk accordingly. -- 2004 - The year $184M couldn't buy a pennant. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Special thanks to the CF Community Suite Gold Sponsor - CFHosting.net http://www.cfhosting.net Message: http://www.houseoffusion.com/lists.cfm/link=i:5:134904 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
