Many fear the falling dollar, but it can actually help to significantly boost your overseas returns. Which country has seen the value of its stocks soar +518% for local investors since 2003 and an eye-popping +1,203% for U.S. investors -- thanks to the declining dollar?

A.) Australia
B.) France
C.) Columbia
D.) Japan
E.) Brazil
Published: March 24, 2008

The correct answer is      (E.)  Brazil

It may sound unbelievable, but since 2003, Brazilian investors have seen their stock market soar +518%; but in dollar terms, Brazilian stocks have gained a whopping +1,203%. Why the difference?

Well, if you've traveled abroad then you understand the impact of a falling dollar when it comes to purchasing power. In early 2002, it took about $0.83 to buy one euro -- now it will cost you about $1.55. In other words, the same 200 euro-per-night Paris hotel room that cost $166 several years ago will now set you back about $310.

Suppose you invested 10,000 euros ($8,300) in a European stock in 2002. Even if its share price was flat, you could now sell your shares for $15,500. That's an +87% gain from the currency fluctuation alone. Similarly, the Brazilian real (it's unit of currency) has soared against the following dollar -- meaning the above example has also taken place in Brazil, but on a much larger scale.

Thus, whether you're investing in Zanzibar or on the NYSE, you're making a currency bet, which is why it can be much more important to be in the right countries than the right stocks.

With that in mind, investors in today's markets need to know where to put their money abroad in order to make money off the falling dollar. That's where StreetAuthority's Nick Lanyi and his premium newsletter, High-Yield International, come in. High-Yield International is the only newsletter of its kind devoted exclusively to finding high-yielding securities in today's best-performing foreign markets. Recently, Nick compiled a list of countries with the best five-year returns for both local and U.S. investors. Not only are these countries offering triple-digit returns, they're offering average dividend yields as high as 8.5%! To learn how to invest in these countries and learn more about the High-Yield International newsletter, please visit this link.

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