I need help to understand I fund ?

[minhthu3387]

Hi everyone is here .... I am glad to be a member here ....I am new member in this ...... I like to understand more I fund ..... I see now US dollar go down ..... and I fund to up now too .... So later if US dollar go up .... will I fund go down ??? It is hard to understand how it relate ????

May anyone understand .... please please ..... please help me out .... I am many thanks to you !!!

Best regards,
MT*

 

[Frixxxx]

Hi everyone is here .... I am glad to be a member here ....I am new member in this ...... I like to understand more I fund ..... I see now US dollar go down ..... and I fund to up now too .... So later if US dollar go up .... will I fund go down ??? It is hard to understand how it relate ????

May anyone understand .... please please ..... please help me out .... I am many thanks to you !!!

Best regards,
MT*

Simple answer is yes... When the dollar loses value, that means it is valued less than other currencies. If you get 10 pesos to the dollar and it costs 1 peso per taco 10 tacos. But if you get a 7 peso to the dollar, now you can only get 7 tacos....the dollar is weak. But from the other side, if it takes less pesos to get a dollar, then the peso is STRONG!
Hence, you have more buying power overseas while the dollar is weak, you have what is called in stocks, Fair Value. This means that since you invest in overseas then, just by the dollar going down, causes those oversea stocks to appreciate in value whether or not they're even traded!

Hope that helps!

 

[KevinD]

Also plenty of reading here.

http://www.tsptalk.com/mb/forumdisplay.php?f=22

 

[nnuut]

Welcome to the Message Board minhthu3387, the I Fund is a hard one to understand, read as much as you can, Fair Value, Time lags, Value of currencies, Politics and economic news.
Best of luck
Norman