Transcript:
Easan Arulanantham:
International stocks have been doing well for the past week, you know, is this on your radar? And should I be looking to buy these?
Tom Vaughan:
Yeah, international stocks have had a good five day run here actually really outperformed the stock market here. I watch international all the time, I have almost no exposure to international stocks, which is unusual, I usually have something. But since this pandemic started, I haven’t had really much of anything. And there’s a variety of reasons why it’s not doing as well. But there’s a lot of reasons why it should be doing better. First of all, the multiples are better, they’re theirs, because they haven’t run. They’re not as expensive. And I think there will be a point in time here where international and I generally deal with abroad, like VX us, which is the total international stock index, maybe VW or the, you know, Vanguard, emerging markets, index, those types of things. I like the broader stuff in that arena, more than you know, trying to get targeted, like certain countries or what have you. But for me, at the moment, the run is too short, personally. So I’m not going to buy into those it’s been five days, we’ve had several other runs that have happened, that have failed.
The other thing I do worry about is although the dollar is a little bit soft right now, I’m not sure it’ll stay that way for the year. And when you’re buying a foreign, you know, stock, it’s in a foreign currency, and it’s going to come back as dollars. If the dollar goes up, your the value of your investment could go down, even though the stock is doing well, just because the dollar is getting stronger. I could be wrong about the dollar. A lot of people were wrong about the dollar last year, I thought it was going to do poorly and it did quite well had a good year. And right now, I think it should be doing better. And it’s not so who knows. But I’m a little bit worried about what might happen with the dollar in terms of its strength and how that might impact the returns that we’re seeing on these international investments. But it’s something that we’ll be watching for real closely and just a more aggressive investor or somebody who moves in and out faster, might have already jumped on the bandwagon but that’s not how I invest the money as far as that goes.