Sunday, August 12, 2007

NYSE heading for a melt DOWN?





If a company sold the commodity LUMBER and lumber prices collapsed, you would probably shy away from that stock.

AMERICAN COMPANIES DEAL WITH AMERICAN DOLLARS.

Bank of America is the largest American bank and one of the most stable stocks on the NYSE. The Bank of Irland is another extremely large bank. When you compare the two of them with the perspective of a foreigner buying their stock. You realize that the Bank of America return 15% over 5 years. Take the rise in the stock then convert it back into Euros. The collapse dollar killed your returns. - WHY NOT JUST PUT YOUR MONEY IN YOU OWN SAVINGS ACCOUNT IN YOUR OWN COUNTRY? Yet if an American invests over seas. He not only receives the gains in his investments he receives the gains from having his money invested in another currency.


When buying funds. Their is always the small print about currency risks. WE ARE THE CURRENCY RISK. How long can the collapse of the US Dollar continue before the world pulls out of America?

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