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Investing Overseas, Help.

Discussion in 'General Investing Discussion' started by Luke90, 7th Aug, 2019.

  1. Luke90

    Luke90 New Member

    7th Aug, 2019
    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.
    twisted strategies likes this.
  2. twisted strategies

    twisted strategies Well-Known Member

    3rd Nov, 2013
    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 )