Where to Strike as The Dollar Droops While the greenback is down, bourses everywhere are up. But that hardly makes foreign equities a sure thing

After years of seeing gains eaten away by a climbing dollar, investors in foreign equities have reason to cheer their returns in the first half of this year. A plunging greenback has delivered stellar gains in dollar terms on bourses from Sao Paulo to Frankfurt to Sydney to Moscow. But while the dol...

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Bibliographic Details
Published in:Bloomberg businessweek (Online) 2003-06 (3839), p.104
Main Authors: Balfour, Frederik, With David Fairlamb in Frankfurt, Jason Bush in Moscow, Geri Smith in Mexico City, Brian Bremner in Tokyo, and Moon Ihlwan in Seoul
Format: Magazinearticle
Language:English
Subjects:
Foreign exchange rates
International finance
Investment policy
Stock prices
Online Access:Get full text
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Summary:After years of seeing gains eaten away by a climbing dollar, investors in foreign equities have reason to cheer their returns in the first half of this year. A plunging greenback has delivered stellar gains in dollar terms on bourses from Sao Paulo to Frankfurt to Sydney to Moscow. But while the dollar may continue to weaken, there is no guarantee it will not bounce back in the second half and erase all the advances. Those currency swings are what makes picking foreign stocks so tricky. Of course, currency is not the only risk associated with European equities. Other dangers include signs of deflation in Germany and recession in the rest of Europe. Among retailer stocks, Mark Mobius, head of Templeton Emerging Markets Fund, likes Russian dairy company Willbinndann because it provides exposure to "the domestic consumer revolution."
ISSN:0007-7135
2162-657X