Initial disclaimer: I'm just a college student who's only asset is being a little clever and obsessive, and reading a lot. That and I'm a mean sculptor.
Ok, I have a few thousand to invest and having already devoted a sizeable amount of money to physical PM in the past, have considered investing in stocks...very carefully... to get some dividends. But recently, the thought occurred to me that if the horrible economic future we all fear comes to pass, stocks will probably take a beating. So now...I'm thinking overseas stocks. In Asia perhaps. Though I want to really look into things carefully before making a jump.
But now this thought occurs to me, and this is the point of the exercise... if someone in America purchases foreign stocks and America experiences the good old times of Weimar Germany:
1) Would the stocks increase or decrease in value here due to the decline in the dollar? Meaning, if one buys 100 shares before the doom-doom-doom...and the dollar drops by half, would selling them at that point mean you double your money in real terms, all else being equal?
Which leads to the next question...
2) How likely is it that battered American consumption could cause Asian stocks to plummet?
3) Could a good outcome for #1 cancel out the effects of a bad outcome in #2?
Tapping collective knowledge is fun. Have at it.
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