Investing In US Equities..But What About The Devaluation of the US Dollar?

One of the questions I hear about investing in the US Market (as an international investor) is the recent devaluation of the US dollar. While I agree that its a valid concern, I would like to highlight something to my readers to put this in perspective.

First off, lets look at the graph:

* The Horizontal Scale Represents The Number of Weeks Since The First Week of January 1998

It’s interesting to note that anyone buying USD now with SGD will be buying it at a 10 year low. Bear in mind that this doesn’t mean that it has bottomed out. If the FED continues to pursue further quantitative easing with QE3, we  might see the USD devalue further.

However, these figures cannot be taken alone without looking at their historical context. Bear in mind that with interest rates at virtually 0%, the Fed was forced to resort to quantitative easing to …

Read the full article →

If you enjoyed this article, get email updates (it's free).

Leave a Reply

Your email address will not be published. Required fields are marked *


7 + = thirteen