economics question

[buffarg]

If the US dollar has lost %9 of its value, does that mean a stock prtfolio has to have increaased by that much to break even?

As it stands, the closest thing I have to a good investment is my jar of Canadian coins

 

[KBear]

It only loses when you covert from stocks back to cash or a different investment vehicle.

Leave it, and you have gained/lost nothing.

sort of like the people who bought Nortel at $40+ a share, they go to bed each night saying the same thing.


If they are US stocks, in US dollars, then your portfolio has dropped in value by 9% in Canadian dollars, if the stock value has not changed.

China is holding US dollars in a big way, got to wonder if the US is allowing the dollar to fall to send a message that china better start spending the US dollars that they are holding.

 

[SucroseFree]

If the US dollar has lost %9 of its value, does that mean a stock prtfolio has to have increaased by that much to break even?

Assume you have $1.00.

Someone robs you of $0.09 or 9 percent of what you have.

You now have $0.91

You try and make it up the $0.09 by investing but currently have only $0.91.

So you need to make 9.89% (= 0.09/0.91 * 100) to end up with $1.00.