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Moving Money Out Of the US

For the first time in my life I have moved money into non-US investments. Specifically in my 401K. I have the option to invest in a blend of non-US stocks.

I have been warned that this investment may be subjected to currency fluctuations. I can only hope so! I specifically did not want foreign stocks valued in US dollars.

Clearly with the sub-prime mortgage mess, the constant trade imbalances, the constant budget deficits and the increasing in-debitiness of the American consumer, I feel the US dollar could be under pressure for a long period of time. And I am concerned that some of the run up in the value of my 401K has been to due to the dollar’s decline.  Which is a short term effect, in the long run the decreased dollar’s value would be reflected in my US dollar based investments.

As we devalue our dollar, so we devalue our Country.

I try to stay balanced in my holdings and it has become clear to me that balance now includes foreign investments.

2 Responses to “Moving Money Out Of the US”

1. Ted Melinosky Says:
   December 26th, 2007 at 5:20 pm

   Actually, it’s long been a good practice in personal investing to invest a proportion of your money in overseas markets. There are a number of mutual funds which offer a great way to spread your risk and invest in US dollars.

   Ted

2. cttaxed Says:
   December 27th, 2007 at 8:30 pm

   So true, so true.
   It’s actually doing quite well.
   I am however faced with the question to re-balance or not. My UTC and others have been quite well and outperforming the SP500. Sell the stellar performancers and re-balance?

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