Vanguard European ETF (AMEX:VGK)

KeitaiOtaku (< 20) Submitted: 9/21/2007 8:05:16 PM : Start Price: $60.73 VGK Score: -24.56

I've read some interesting articles about the dollar versus foreign currency. Essentially we get a bonus every time the dollar is devalued, which happens when interest rates are lowered. I don't understand all the mechanics, but I would imagine that as the $ becomes easier to get, it's value declines. The price of $ is cheaper, so it is less valuable versus foreign currencies. Foreign stocks then, which retain their value in their own currency, get a boost when traded on the american market because of an increase in value with respect to the dollar. That's a part of my logic (though it's only a recent addition). The rest is that these economies (europe in particular) are doing better and better financially. Europe is a strong player, to be contended with, and a strong market to invest in.