Archive for the ‘Investing’ Category

January 26th, 2010

is there any non us investor who still has the guts to invest in the us given its mismanagement of the economy

fred asked:


dollar has lost complete confidence, central bank doesn’t care about inflation, government loves to spend, deficit at an all time high, americans completely ignorant; what’s there to like, america has become a banana republic.
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December 2nd, 2009

Why do investors still invest in the US when the US$ depreciates almost daily against most major currencies?

fred asked:


US$ has for example depreciated 60% against the Euro what’s the point in investing in US$ when the currency depreciates almost like a banana republic currency. A stock can appreciate by 40% but when the Euro gains from 0.85 in 2000/01 to 1.34 in 2007 any investment in a US$ denominated company doesn’t make sense.
Even if you consider an investment in the Dow Jones or SP500, a Global investor would have lost money since 01 as a result of the depreciating dollar, whereas a US citizen may be richer in US$ terms but will have lost in terms of buying power as well.
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