Investing Overseas, Help.

Hey Everyone,

I am fairly new to investing and a bit stuck at the moment. I'm keen to add to my overseas holdings but something I never considered the first few times was the exchange rate from aud to usd.

My question is, how much of a factor is the exchange rate when you invest overseas? With the aussie dollar approaching all time lows should I hold off on investing in overseas markets like the US?

Any advice will be much appreciated, thanks.

 

welcome to InvestChat ,

FX ( foreign exchange ) , can be a blessing or capital killer

check out the fees and commissions and the exchange rate is a constantly moving target

NEXT do the DEEP research on the fees are charges your broker charges ( some even charge an inactivity fee or require a sizable cash balance at all times .

there are several reasons i am not attracted to investing in the US ( one being it is a very mature market so has limited sensible growth potential )

i prefer ( ASX listed ) NZ companies , but do look at ( ASX listed ) companies operating in Asia , i really am trying to get sensible exposure to India .

the low Aussie dollar is normally beneficial the Australian companies that export ( resources and agriculture businesses are favored targets although Graincorp still finds extra headwinds

good luck

( don't forget the extra tax implications )