hr: Money

Even though the dollar seems to be doing well, you can’t feel that it’s problems are over. In an article about the Weakened Dollar, David Ellis feels that it might be too early to celebrate. Even though exports benefit from this, imports really take a beating, and it can hurt the economy, and even boost inflation.

Photo Credit: Manuel Delgado Tenorio

So what can you do to battle this situation? According to George Mannes of Money Magazine, the best thing that can be done, is to invest in Foreign Funds. He says, that since the dollar has been steadily losing ground against other major currencies like the Yen, the Pound, and the Euro recently, the best thing to do is to invest overseas.

However, he also cautions that most people hear rumors about certain stocks, and keep pulling out and reinvesting. This, as he points out, is called ‘Chasing Performance’, and can really hurt your investments. The idea, he says, is to put your money into certain overseas funds, and then keep it there. He goes on to say, that putting 20% of your money into foreign funds is more than enough, and even suggests Vanguard overseas funds to invest them in.