Dear readers, I believe many Singaporean investors also invest in US stocks which are one of the largest stocks markets in the world. And some of the US stocks are also very exciting to invest in as if an investor manage to spot the next Amazon stock, he or she are going to be very well rewarded!
Investors investing in US stocks may be really looking for the potential capital appreciation, not least multi-bagging ones. In doing so, they may be missing or neglecting the risks that are present.
Well, coming back to this post. This post is not about how to choose a stock or how to analyse the reward or risk ratio where it comes to investing in US stocks. What I am going to talk about is something more important. One that many investors may have neglected.
And that is none other than the fact that when investors invest in US stocks, most of the time they may have missed the important point of the US dollar, not just the USD to SGD exchange.
How is the future of the US dollar. Will the US dollar crash one day? If the US dollar drops in value or to go very low, how is your US stocks portfolio going to be affected?
Many may said the US dollar is still going to be strong for a very long time. But in today’s world, nothing is given. Like what I have always advocated here on SG Stocks Investing, what investors can do is to prepare ourselves for any eventuality notwithstanding the need to stay invested for the longer term.
On this note, you may wish to start preparing your investment warchest in light of the next stocks markets corrections!