An example of what i mean is my broker recommended a stock PBR which is petroleum based company in Brazil because the Brazilian currency is appreciating against the dollar, how is this is good sign?|||If you invest in a Brazilian company, you must purchase reais (plural or real) since the investment is denominated in that currency, thus selling dollars (assuming you're US-based).
When you close your position, you liquidate the stocks and change the real back to USD, so in the end if the stocks went higher, you earn the difference in the stock price (in reais) PLUS the difference due to the real appreciation against the dollar.
The real appreciation should preserve you from the change risks of investing in a foreign currency.
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