I Fund and Dollar

[clester]

Question: Because the dollar is so weak( about $1.26 to buy a Euro) Shouldn't the I fund do better that S & C funds because of the exchange rate?

It seems to me that it should, even if the dollar climbs some its got a long way to go to be equal to the dollar.

What I've noticed is that, when the EFA shows down 0.5% the I will go down about 0.3% etc. and of course a day late sometimes. I haven't researched this yet, but it seems to make sense. Maybe thats why its outperformed the other funds.

[clester]

Look atr this I fund chart. It's well above the 20 day moving average.

[tsptalk]

clester wrote:
Question: Because the dollar is so weak( about $1.26 to buy a Euro) Shouldn't the I fund do better that S & C funds because of the exchange rate?

It seems to me that it should, even if the dollar climbs some its got a long way to go to be equal to the dollar.

Interesting question. I would think you could look at that two ways. The first way is what we talk about all the time, if the dollar is falling, international funds do better. But ifthe dollar stays down (not necessarily falls) foreigners can get good deals on U.S. stocks and American invstors are less likely to buy foreign stocks because they get less bang for the buck, which would lure money into the U.S. markets. :?

[Dakota]

clester tell me your opinion on the I fund for thursday