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To: SeekAndFind

Besides the currency exchange risk of foreign bonds, bonds in general carry inflation risk. With all the excessive printing of money, inflation is certain to rear it’s ugly head when economy recovers. Buyers be aware.


2 posted on 06/30/2012 3:15:18 PM PDT by entropy12 (Hate is the most insidious emotion, it will rot your gut from the inside.)
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To: entropy12

RE: currency exchange risk of foreign bonds

For me, I look at the FISCAL and DEBT fundamentals of a country to determine whether the future of a currency is STRONGER or WEAKER.

Consider this — America’s debt to GDP ratio has now approached 100%. Australia’s is a mere 22% and there is strong clamor on both sides of the political fence to SHRINK that.

I would not be surprised to see the Aussie strengthen vs the USD ( which it has the past few years ).


4 posted on 06/30/2012 3:29:59 PM PDT by SeekAndFind (bOTRT)
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