foreign stocks
Has anyone noticed how closely the various stock markets are correlated? I was getting into foreign stocks, thinking that they were safer but that doesn't seem to be the case.
The old joke was that when the U.S. got the sniffles, Europe got the flu. The markets are strongly related. A problem in Russia or Asia ripples around the world. Most of the money made in foreign stocks now is strictly a currency play. The Euro goes up as the dollar goes down. Works the other way too. I favor country ETFs where said country is a major source of natural resources. Basic commodities have going to the moon for two years. One materials ETF I have is up 50%. I expect some roller coaster action but it's pretty hard to make wheat and iron out of BS so long term they're pretty solid bets.
8 months ago
I agree with what you said aobut the U.S sneezing, but current wisdom was saying that the other economies are so strong that our sneezes wouldn't effect them. I don't see that scenerio playing out.
I worry aobut the basic materials. If we go into a recession and drag the world with us then there won't be much demand for basic materials. I did act on the idea that food prices were going to go up and bought MON, MOS, MOO, and BG and got killed.
I worry aobut the basic materials. If we go into a recession and drag the world with us then there won't be much demand for basic materials. I did act on the idea that food prices were going to go up and bought MON, MOS, MOO, and BG and got killed.
8 months ago
