Investment advice will always be controversial. Variations in short-term markets will prove fools to be geniuses and vis versa.
That being said, I feel compelled to respond to this blog.
In my opinion, investing in foreign currencies is a poor strategy. Currency markets are a zero sum game. It is fraught with hazard (it has bankrupted giant banks). If you believe that you can outwit literally thousands of full-time currency traders at the game they rig — go for it.
On the other hand, foreign (international) stocks are not a zero sum game. They represent an ever-expanding (I hope) world economy. In the long run they should be excellent investments when paired with holdings in the world’s largest economy, the US.
In World history since the industrial revolution, stocks have been the preferred investments. There is no reason to expect a change in the future. Forget the numerous naysayers — I’ve already heard them all. The vast majority of reputable advisors will agree with my opinion.
I will refer the young, the naive, and the misinformed to a site put out by Ken Fisher Investments. Mr. Fisher may be more informed than you. He is a billionaire investor. He has written an investment column for Forbes Magazine for 25 years. He runs one of the more successful private investment companies (I’m a very happy client).
The short advice:
Don’t bet on foreign currencies
Don’t buy gold or commodites (though gold stocks may be worthwhile)
Don’t buy bonds when you’re in your 20s
I don’t know if Rich agrees with me. From lurking here over the last year and now finally posting, I have come to highly respect his real estate insights. I would love to hear his opinion.
