5 ms·

Why don't you just put your money in a global index fund instead? No one forces you Americans to invest your savings in your own country..in fact, that seems li

by marvin 16y ago

Why don't you just put your money in a global index fund instead? No one forces you Americans to invest your savings in your own country..in fact, that seems like a pretty bad idea in the first place, since this means that when the economy is bad and it is hard to find jobs is the same time it is a very bad idea to take money out of your investments. Seems pretty obvious to me that the American economy as a whole has so much shenanigans going on that investing broadly in it is a bad idea. Is it really that hard to move your money to a foreign currency`

lsc 16y ago
they say when America gets a cold, the whole world gets the flu. Sure, the US economy is in pretty bad shape right now. but where else do you suggest we invest? this isn't a localized problem.
noonespecial 16y ago
Seems pretty obvious to me that the American economy as a whole has so much shenanigans going on that investing broadly in it is a bad idea. Is it really that hard to move your money to a foreign currency The terrifying part is that what you say is true, but America is still the best place to invest. Burying pirate treasure on an uncharted island is actually starting to look good.
nostrademons 16y ago
Which country? Europe is worse-off than America, China likely has their own bubble. Japan has been in a funk for 20 years. Russia has recently been cracking down on political freedoms in a worrisome way, there's no guarantee that you'll be able to take your money out once you put it in. Same for many Latin American countries.
- nileshtrivedi 16y ago
  How about India? Indian economy has bounced back some time ago. Here is sensex over last 5 years. http://in.finance.yahoo.com/q/bc?s=^BSESN&t=5y&l=on&z=m&q=l&c= http://in.finance.yahoo.com/q/bc?s=^BSESN&t=5y&l=on&... Risk-free return rate is still at around 8%: http://www.bajajcapital.com/gss/nsc.html http://www.bajajcapital.com/gss/nsc.html
  - tkhoven 16y ago
    If I'm reading it correctly, that risk-free return rate is only available to resident Indians. In addition, even if international investors would be able to access it they'd be adding currency risk to the equation.
    - nileshtrivedi 16y ago
      Yes, and Yes. I quoted the risk-free rate to give an idea about the economy and its risk-level. Equity market here can be expected to give decent returns (~15%). I'm not sure about the citizenship requirements but the equity markets should be quite open. http://new.valueresearchonline.com/funds/default.asp http://new.valueresearchonline.com/funds/default.asp
- loewenskind 16y ago
  >Europe is worse-off than America Citation and qualification needed (e.g. Switzerland certainly isn't worse off than America).
  - run4yourlives 16y ago
    Greece, Spain, Italy and to a lesser extent France are essentially bankrupt.
    - loewenskind 16y ago
      Initial citations/qualifications still needed and citations for these new claims needed as well. The countries you listed (aside from Greece of course) are having some issues, which they are addressing. So what. From where I sit (live in Europe, have family and friends still in the US) the US looks much worse off.
      - run4yourlives 16y ago
        The initial argument was that investing in Europe as opposed to the US wasn't going to get you anywhere. While we could debate ad-infinitum which economy is "worse", the point stands. It's easy to establish that Europe is in at least as bad a position as the US. Your point as to Switzerland's health points exactly to why many (including myself) think this means that it is actually worse overall: Because of the Euro, each of these problem countries can't control their own interest rate, and so the likelihood of actually defaulting is greater. http://www.moneyweek.com/news-and-charts/economics/europes-economy-goes-from-bad-to-worse-14508.aspx http://www.moneyweek.com/news-and-charts/economics/europes-e...
        loewenskind 16y ago
        >that it is actually worse overall That what is actually worse overall? Europe or Switzerland? Switzerland isn't in the EU and doesn't have the Euro. It's true they've bought a lot Euros to try and keep the Franc down but they've bought a lot of US dollars as well (for the same reason).
GFischer 16y ago
Indeed. There are investments here in South America that pay off so much better than what is described in the article. The trouble is, you have to really fear the kleptocracies in charge, and even in the more sensible countries (like Chile, Costa Rica or my own, Uruguay) you have to be on your feet. As usual, higher returns means higher risk (real or perceived - I suspect the risk difference between here in Uruguay and the US is more perceived than real). By the way, if you want an investment that is mostly risk free, I'd look at finite commodities: steel, oil, uranium, copper, etc... (my uncle actually buys physical steel plate as a hedge - it can be used as input to his business but it's also a savings account).

by marvin 16y ago

lsc 16y ago

they say when America gets a cold, the whole world gets the flu. Sure, the US economy is in pretty bad shape right now. but where else do you suggest we invest? this isn't a localized problem.

noonespecial 16y ago

Seems pretty obvious to me that the American economy as a whole has so much shenanigans going on that investing broadly in it is a bad idea. Is it really that hard to move your money to a foreign currency The terrifying part is that what you say is true, but America is still the best place to invest. Burying pirate treasure on an uncharted island is actually starting to look good.

nostrademons 16y ago

Which country? Europe is worse-off than America, China likely has their own bubble. Japan has been in a funk for 20 years. Russia has recently been cracking down on political freedoms in a worrisome way, there's no guarantee that you'll be able to take your money out once you put it in. Same for many Latin American countries.

nileshtrivedi 16y ago
How about India? Indian economy has bounced back some time ago. Here is sensex over last 5 years. http://in.finance.yahoo.com/q/bc?s=^BSESN&t=5y&l=on&z=m&q=l&c= http://in.finance.yahoo.com/q/bc?s=^BSESN&t=5y&l=on&... Risk-free return rate is still at around 8%: http://www.bajajcapital.com/gss/nsc.html http://www.bajajcapital.com/gss/nsc.html
- tkhoven 16y ago
  If I'm reading it correctly, that risk-free return rate is only available to resident Indians. In addition, even if international investors would be able to access it they'd be adding currency risk to the equation.
  - nileshtrivedi 16y ago
    Yes, and Yes. I quoted the risk-free rate to give an idea about the economy and its risk-level. Equity market here can be expected to give decent returns (~15%). I'm not sure about the citizenship requirements but the equity markets should be quite open. http://new.valueresearchonline.com/funds/default.asp http://new.valueresearchonline.com/funds/default.asp
loewenskind 16y ago
>Europe is worse-off than America Citation and qualification needed (e.g. Switzerland certainly isn't worse off than America).
- run4yourlives 16y ago
  Greece, Spain, Italy and to a lesser extent France are essentially bankrupt.
  - loewenskind 16y ago
    Initial citations/qualifications still needed and citations for these new claims needed as well. The countries you listed (aside from Greece of course) are having some issues, which they are addressing. So what. From where I sit (live in Europe, have family and friends still in the US) the US looks much worse off.
    - run4yourlives 16y ago
      The initial argument was that investing in Europe as opposed to the US wasn't going to get you anywhere. While we could debate ad-infinitum which economy is "worse", the point stands. It's easy to establish that Europe is in at least as bad a position as the US. Your point as to Switzerland's health points exactly to why many (including myself) think this means that it is actually worse overall: Because of the Euro, each of these problem countries can't control their own interest rate, and so the likelihood of actually defaulting is greater. http://www.moneyweek.com/news-and-charts/economics/europes-economy-goes-from-bad-to-worse-14508.aspx http://www.moneyweek.com/news-and-charts/economics/europes-e...
      - loewenskind 16y ago
        >that it is actually worse overall That what is actually worse overall? Europe or Switzerland? Switzerland isn't in the EU and doesn't have the Euro. It's true they've bought a lot Euros to try and keep the Franc down but they've bought a lot of US dollars as well (for the same reason).

GFischer 16y ago

Indeed. There are investments here in South America that pay off so much better than what is described in the article. The trouble is, you have to really fear the kleptocracies in charge, and even in the more sensible countries (like Chile, Costa Rica or my own, Uruguay) you have to be on your feet. As usual, higher returns means higher risk (real or perceived - I suspect the risk difference between here in Uruguay and the US is more perceived than real). By the way, if you want an investment that is mostly risk free, I'd look at finite commodities: steel, oil, uranium, copper, etc... (my uncle actually buys physical steel plate as a hedge - it can be used as input to his business but it's also a savings account).