[quote=jimmyle]If the dollar falling is true. Is buying foreign mutual fund a good move?
For example, if I buy a mutual fund in Euro. And that mutual fund price remains the same but the Euro gains 10% on the dollar. Does it mean that I gained 10%?
Thanks for your advice.[/quote]
If the mutual fund price remains the same, then yes.
Whether it’s really going to remain the same, that’s a big assumption that needs to be justified.
For example, the 10% drop in the dollar may not result in a matching change in dollar-denominated stock value of Airbus, because cheaper dollar will allow Boeing to steal some market share from Airbus.
Also, if you’re expecting some kind of catastrophic change (a collapse), that would most likely result in economic slowdown and lower asset prices worldwide. So, it’s best to invest in individual currencies and short-term bonds.
