Invest in foreign Co's when USD strong or weak?

[alm4rr]

I am 😕
as the USD is weak against the Euro
Thx

 

[alm4rr]

http://www.chicagofed.org/cons...dollar_weak_dollar.cfm

Yahoo article

There are various ways investors and traders play the dollar's rise and decline. One such way is by purchasing or selling options on foreign currencies. For example, if you think the dollar is headed down against the yen, you will want to load up on currency options that will let you buy yen for less when its taken off against the dollar. Another way to play the dollar is to invest in the stocks of foreign companies. If the dollar's headed down, you will protect the value of your money by investing abroad. And when the dollar reverses course, you can sell out your foreign holdings and bring your money back to the states.

 

[iwantanewcomputer]

you want to invest when the dollar is strong vs. that company's domestic currency. that way you get more shares from each dollar you invest, then you sell when the dollar is weak and get more money from the same amount of shares

so is the dollar headed down or up compared to international currencies such as euro/yen and how do you tell?

 

[alm4rr]

http://story.news.yahoo.com/ne...urope&sid=96001027

Euro hits near-nine month high against dollar

 

[GasX]

Buy European Stocks when the dollar is STRONG

Example:

1$ = 2Euro - you get to buy LOTS of shares of the European stock

1 year later the Dollar weakens a lot

$1 = 1Euro - you get LOTS of dollars for selling your European stock...