Tags:
Investments,
Gold,
Index funds,
Stock market,
Stocks,
Investing,
Commodities,
Dollar,
Currency,
Mutual funds,
Foreign currency,
International stock.
Instead of foreign currency, gold or a diversified basket of commodities, the article claims that international stocks can make for a better option for those worried about the falling dollar:
The more convinced you are that the dollar will fall, the more you should hold in international stocks, ideally through a low-cost index fund that doesn't hedge currencies. Even if your view on the dollar turns out to be wrong, you will end up with a better diversified portfolio.
On the issue of how worried investors should be about the falling dollar, the article puts things in perspective:
Over the course of time, currency fluctuations tend to wash out. And even a long-term decline in the dollar might not be disastrous; since 1950, South Africa has had one of the world's weakest currencies, but one of the best-performing stock markets. The dollar is falling, but the sky isn't.
Submitted: Sep 13, 2009
Views: 146
Comments: 1
Likes: 2
View Article: http://online.wsj.com/article/SB125271048869905007.html
Sponsor Updates and Offers
Related Articles:
Email to someone |
Print Content |
Add to reading list
Comments Received:
Taranjit Singh
(Unregistered)
Writer has smartly dodged the basic issue of holding on to dollar investments.
Posted: Oct 14, 2009