Published:
March 24, 2008
The
correct answer is
(E.) BrazilIt 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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