Dave,
First my disclaimer I am not an expert in foreign investing, and I do not
invest foreign other than through mutual funds or ADRs. My knowledge is
based on what I read in books and magazines.
Direct and simple answer to your question is you gain more from foreign
investment when dollar is falling - you get a boost in return through
currency exchange rates if dollar is weaker when you sell than it was when
you bought. Here you may need to watch if dollar is bottomed, if so, it will
be stronger when you sell and you will lose a portion of you gain through
currency exchange.
Having said this, other factors you have to consider are - is the economy of
the country you are investing in growing? Is the intrest rate in that
country stable? What are capital gains tax laws for that country? How is the
political stability of the country? Government regulations on business?
Ofcourse last but not least, how is the business growth of the company you
are investing in? These are tougher questions to get answers on for foreign
companies. This is why I stick to mutual funds for foreign investments.
International funds have done well recently due to i) "Growing" economy
abroad; ii) "Falling" dollar.
--Anjan--
On 7/18/07, DBester <DavidB@???> wrote:
>
> When it comes to investing in foreign stocks my knowledge is about at
> the "0" level.
>
> Basic question. With the Dollar as low as it is ...... does it make this
> the worst of times or the best of times to buying foreign stocks.
>
> Thanks.
>
>
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