What has caused the U.S. dollar's currency exchange rate to be the strongest in twenty years? How a strong dollar leads to slower global economic growth and falling asset prices. Topics covered include: Why a strong dollar is a no-win situation for the rest of the world Why have inflation and interest rates increased Why recession risks are rising as central banks combat inflation Why asset prices fall when interest rates rise What would cause the U.S. dollar to weaken … [Read more...]
236 Plus: January 2019 Mid Month Update, Corporate Bonds and Retirement Currency Risk
This Plus episode for the week of January 19, 2019 includes a mid month update on investment conditions. We consider how sharply corporate credit ratings can be downgraded to junk after a company runs into trouble rather than beforehand. Finally, we answer a member's question who has savings and earning in a currency that is different from where he tends to retire. … [Read more...]
209: Why Bother Investing Internationally?
Is it worth investing outside your home country given the risk? Should you hedge currency risk? What is the impact of Chinese "A" share listed companies being added to emerging market indices. Photo by Jacopo Marello In this episode you’ll learn: What are the risks of investing outside your home country.What is the main reason to invest internationally.How have valuations of stocks have changed since 1993.Why U.S. investors should consider hedging currency risk but … [Read more...]