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Stocks B / Berkshire Hathaway


Subject:  Re: Stock Picking Getting Harder Date:  11/24/2017  8:11 AM
Author:  JeanDavid Number:  232785 of 247893

if you're having problems finding some of the symbols, the ones ending with ".AX" have been procured on the Austrailian market in Aussie bucks and the ones ending in ".VX" have been bought on the Swiss bourse in Swiss Francs. This adds currency risk on top of market risks, but that's another game I regularly play.

I do not think having stocks denominated in foreign currencies is necessarily a currency risk. I think of it as a spreading of risk. What makes you so sure (if you are sure of this; you may not be) that the US dollar is the most stable of all currencies? There was certainly a time, around 1970, when the Swiss Franc was much more stable than the US dollar*, and having your assets in US dollars was the currency risk. Perhaps the US dollar is the most stable this month or this year, but will it always be so? IMAO, one of the reasons to invest in non-US stocks is just to reduce the danger of a falling US dollar.

* Back then, the US economy was in trouble because of the productivity loss due to being at war with Viet Nam, and borrowing our way to pay for it, causing severe inflation. We had to go off the gold standard (Breton Woods agreement) to allow the inflation to increase. And now we are fighting five to seven wars (depending on how you count them) instead of just one. Of course, these days, most (if not all) countries are trying to borrow themselves out of debt, so pick your foreign investments as carefully as your US ones.
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