Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Oversea's funds
Old 07-11-2008, 12:53 PM   #1
Dryer sheet aficionado
 
Join Date: Sep 2007
Posts: 26
Oversea's funds

I've heard alot about how oversea's countries are still growing quite rapidly. Why is it that my oversea's funds have tanked as bad or worse than what I have in the states? Cletis
__________________

__________________
cletis is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-11-2008, 12:56 PM   #2
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Quote:
Originally Posted by cletis View Post
I've heard alot about how oversea's countries are still growing quite rapidly. Why is it that my oversea's funds have tanked as bad or worse than what I have in the states? Cletis
... and some day they'll outpace your domestic equities by a mile.

For me it's about diversification. It's a good thing when some things are up and some things are down. That is, assuming you're looking to get your fair share of the market with reasonable volatility rather than make a killing on one particular sector.
__________________

__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 07-11-2008, 01:03 PM   #3
Full time employment: Posting here.
CitricAcid's Avatar
 
Join Date: May 2008
Posts: 546
Maybe the growth in the stock market in the first place did not match the actual growth in the companies in the funds? It has not been proven or is not necessary to believe, but most say that international funds and companies are much mroe volatile and risky, which tend to lead to better returns over the long run, because they are not as established and widely traded as American companies. Without the downside risk, what is there to be risky about them?
__________________
CitricAcid is offline   Reply With Quote
Old 07-16-2008, 06:47 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 2,020
Just because a company is growing doesn't mean that it's stock won't be risky. People sell when they panic. People sell if they think the company won't grow as much. People sell if it's Wednesday. If you're facing a global cooldown, forward sales won't be as strong, which means you price the bad news into the stock and sell.
__________________
Marquette is offline   Reply With Quote
Old 07-16-2008, 09:36 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
The value of the companies in your overseas funds have gone up. It just that your American dollar has gone down and only buys a fraction of what it used to overseas.

That is, overseas funds have not only market risk, but also currency risk.
__________________
LOL! is offline   Reply With Quote
Old 07-16-2008, 09:42 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 2,020
Quote:
Originally Posted by LOL! View Post
The value of the companies in your overseas funds have gone up. It just that your American dollar has gone down and only buys a fraction of what it used to overseas.

That is, overseas funds have not only market risk, but also currency risk.
But in that case the value should have also increased. If I own something at $100 but my dollar drops, then I sell it and get dollars back so maybe I get $125 back just for having something hold its value.
__________________

__________________
Marquette is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Bond funds vs. stock funds summer2007 FIRE and Money 15 01-14-2008 03:22 PM
Target Retirement Funds: Bond Funds vs Actual Bonds? Gearhead Jim FIRE and Money 11 10-23-2007 12:39 PM
(FAQ archive): Invididual Stocks vs. Funds/Active Funds vs. Passive Funds Nords Early Retirement FAQs 0 10-22-2007 04:07 PM
Index funds beat most active funds JustCurious FIRE and Money 57 10-23-2006 12:14 PM
FI taxable funds versus retirement funds just_hatched FIRE and Money 12 10-10-2005 10:09 AM

 

 
All times are GMT -6. The time now is 02:28 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.