Re: [CANSLIM] Effect of exchange rates on investing.

Anjan ....... thanks for your response. Really appreciate your comments.



Anjan . wrote:
> 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@???
> <mailto: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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