> Won Lee wrote: > 1) You are breaking the most fundemental rule about investing if you buy > Euros now. You are buying high.
It depends on your outlook: 1.) Yes, since 2000 the dollar has lost 57%, that seems high. If, however, you think the dollar has another 30% - 40% to go then you've still got plenty of upside. 1.b) Currency swings typically last 5 - 7 years and we're 2 years into the current one. 2.) Here's the more important point IMO. You are correct that ForEx trading is not usually for the casual investor. But I think there's something else happening here that the fall of the dollar is just a part of. The dollar drop may precede a large "correction". If that happens you'll see a big loss in the major indexes. In a nut shell, sure, you could buy a index fund and make 8% this year. But if the correction takes 30% the year after, you're underwater. If you bought had Euros, however, you'd be up, say, 10% or more. I'm not a CFA either so what do I know? I would just offer that it might be a good idea to check out something like EverBank.com or Vanguard's International Explorer fund - it invests in small-cap companies with local exposure, i.e., somewhat shielded from the US. I'm on the chicken little side - I believed all the people who said the bubble was going to burst; and it did. Now those same folks are predicting a correction. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Special thanks to the CF Community Suite Gold Sponsor - CFHosting.net http://www.cfhosting.net Message: http://www.houseoffusion.com/lists.cfm/link=i:5:134981 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
