You hear a lot nonsense from the so-called experts. Some time ago, when gurus did not know what to recommend, they told you to buy China.
Now the same experts are telling us to buy Europe. Why? Just look at the chart of the Dax index (German stock market). It soared lately and the gains in the past 12 months look really impressive - +21.04% (see above chart).
Of course what the same experts fail to tell you is that in order to buy the Dax index you have to sell Dollars and buy Euros to invest in Germany.
Now you are invested in a strong European market and you are holding an exposure to Euros (your investment are in Euros). But the Euro declined 22.4% in the past 12 months.
The point is that whatever you made by investing in "Europe" you lost it because of the collapse of the currency of your investment - the Euro.
George Dagnino, PhD
Editor
The Peter Dag portfolio
Since 1977
The Peter Dag portfolio
Since 1977
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