I fund and the proverbial head scratch.

[Lostdawg]

My head hurts, first off. I've been reading on the I fund, trying to understand.

Is the "basic" idea for understanding the I fund the following?

- That you are betting on the ability of the companies in those foreign countries (used) to grow profit?

- That you are also having to consider the exchange rate of the dollar. Versus those currencies that the foreign companies make their profit in?

Once I have the simple part down I can dive deep. But right now the water is clear as mud on this for me. It feels like I've hit my head on some rocks already.

 

[Lostdawg]

Also, I understand all the talk in here seems to be short term movement between funds and trying to track the I fund correctly. But I'm trying to look at the broader concept for long term.

 

[Medic72]

i know this is an old post but i have been having the same problem, more than one actually, alot of us have issues with foriegn countrys buying up america, if we are investing in the foriegn stocks, doesn't this make us just as bad.

 

[WorkFE]

i know this is an old post but i have been having the same problem, more than one actually, alot of us have issues with foriegn countrys buying up america, if we are investing in the foriegn stocks, doesn't this make us just as bad.

M72, that is a great conversation. I would be willing to bet that if you laid it out on your thread you would probably get a crap load of responses and possibly some much needed help for lostdawg

 

[Medic72]

alrighty then

 

[KevinD]

Coolhand posted this link a while back. Check out the section on the I fund. It may or may not help.

http://investorshub.advfn.com/boards/board.aspx?board_id=4258

 

[TravelinTom]

I'm with LostDawg and need an "I-Fund for Dummies" thread. I guess I vaguely understand that the "Fair Value" computation relates to the strength of the dollar. What I do not understand at all is why the I-Fund trends so closely follow the S&P 500 (C Fund).

 

[Bullitt]

Don't read too much into the fair value trick because in the long run you're only going to find yourself picking up pennies in front of a steam roller.

We've been in a cyclical bull market since March of 2009. In a bull market, it doesn't take much of a stockpicker to make money because everything is usually going up in price. Decoupling theory was largely falsified in the Panic of 2008 when every asset except treasuries got hammered.

Personally, I think the whole entire world is piggy backing the growth story in China right now, but until buying the dips stops working, there's no reason to believe in Irrational Exuberance on the part of investors.