Can anyone help me understand why when investing overseas a dropping dollar would work against a US investor when invested in something?
In the following article it states "if the dollar weakens against other currencies, ... it reduces the value of US investors' foreign holdings".
RealEstateJournal | Foreign Real-Estate Funds Boom As Firms Introduce New Products
Here is how I would think this would work:
1) I spend $100 on 1 share of a Foreign REIT Mutual Fund
2) the dollar decreases in value so it costs me $101 to purchase 1 share of a Foreign REIT Mutual Fund
3) I sell my 1 share of a Foreign REIT Mutual Fund and recieve $101 (or something like that)
What am I missing?