October 2011

Avoid This Trap When Investing in Foreign Stock Markets

October 17, 2011 - 07:35 — Van Beek

Investing in Foreign Stock Markets Trap

 

When you invest your savings in foreign stock markets, you can still lose money despite markets going up. The risk here is the currency trap. Read on to understand this trap and how to avoid it.

Imagine the following situation. You have invested some of your savings in a foreign stock market. The reason is that you expected that market to go up much more than the stock markets at home. And you invested in the safest possible way:


S&P 500 lost over 12% in 2 Months

October 4, 2011 - 14:59 — SP 500

Despite some of the best days every, the S&P 500 has lost more than 12% during the last 2 months.

The 3 months before that, it had lost already 5% since its peak end of April.

This situation is a good example that trend signals are not capable to tell you if the market is at its top.

But long-term trend signals can tell you when the long-term trend has turned down.

Nobody knew in May orJune that April was the peak.

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