Re: Evaluating Managed Funds
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Why should Ed have to be concerned about a major drop in the US dollar if his assets are based on US companies? Most of these companies transactions will be dollar to dollar.
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Well there is taking advantage of the "tailwind" foriegn equity values get from the declining dollar.
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Also, with the Fed increasing rates and the EU unlikely to do so, it's more likely the dollar will get stronger not weaker versus euro and other currencies, so european funds will need to overcome that drag.
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How much longer will the Fed increase rates? How much longer CAN the fed increase rates? Not much longer I think.
Our government is still running huge deficits, this devalues the dollar over time. This year the dollar got a respite because of a one time large inflow of repatriated corporate foreign income. That "tax holiday" just ended. I think it's highly likely the dollar has a bad year next year and that this will continue until we address our budget deficits.
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