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> Another way would be to buy from a US mutual fund
> focused on foreign securities. Common sense tells me
> that if such a fund holds shares of e.g. Swiss
> securities and the USD slips with respect to CHF,
> the value of my mutual fund shares (denominated in
> USD) should increase by the same ratio.
> Does anyone know whether this works in practice?
Nobody has responded to this question by Oliver yet
.. while I am not an expert, I can pass on what our
benefits people at work tell us: If you invest in
foreign securities, you will be affected by the
fluctuations in currency exchange rates just as you
described. If the USD slips in comparison to the
foreign currency, you benefit; if the USD rises, you
lose. And they tend to attach a number of warnings
that you absolutely cannot predict which way these
fluctuations will go, so the standard advice is if you
buy foreign currencies, diversify among different
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Received on Tue Jan 06 2004 - 20:17:06 PST