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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?


To: re3 who wrote (668)5/4/2003 2:49:25 PM
From: GraceZ  Read Replies (1) | Respond to of 4912
 
You factor total return and then you apply inflation and taxes to see what is your real return. I don't factor currency fluctuations unless I own securities that are priced in a foreign currency and need to repatriate them into dollars to realize the loss or gain. I think you would have taken serious offense to us Yanks factoring the return of a rising dollar back when the dollar did nothing but rise, whereas for the Europeans who owned dollar denominated assets it was a nice added currency kicker it didn't mean much to someone who has to spend money in dollars.

How do you do it differently? When the Canadian dollar was sinking relative to the dollar did you factor that in to your return, or do you only factor it in now that it's rising relative to the dollar?

When I spend money or when I earn money, it is in US dollars. As hard as it is to believe, the falling dollar hasn't yet had much of an inflation effect here yet primarily because much of what we import is from countries whose currencies are not rising very much relative to the dollar (Yuan) whose economies are deflating. Plus, local demand has weakened enough for prices to still remain weak where I live (although I can tell you that this is not true in all parts of the US).

I'm not much into European cars, clothes or durables so the strengthening Euro doesn't effect me much personally.



To: re3 who wrote (668)5/4/2003 8:17:33 PM
From: LLCF  Respond to of 4912
 
If I remember correctly, you're Canadian... so put your returns on par with ours here in the States you need to convert to US currency. Folks with assets in Canada [me!] don't have to do much lately to compare nicely to $US returns.

DAK