alt Hacker NewsI find the S&P500 to be interesting as a demonstration for currency risk. Denoted in US, it went up ~18% or so. For me as an EUR investor, it went up just 4.6% when accounting for the loss of the USD. Comparing that to indicies that usually do not perform that well, Euro Stoxx 50 is up ~22% and MSCI Emerging Markets ~21%.
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> indicies that usually do not perform that well
MSCI EM has outperformed MSCI US since it's inception in 2001 if you look at total return.
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That logic is flawed. The end value and ROI for S&P500 is the same regardless of the currency used to display it.
It's the same as complaining that the temperature increased more in Fahrenheit than in Celsius.
EDIT: The total value is the same regardless of the fluctuations of currencies used to represent the value. Those are two independent issues.
Currencies fluctuate even if you keep them in checking accounts without investing them.
And yes, if you measure distance in feet, your son will go every year further away than you because his feet keep growing, while yours stay the same.
I noticed this as well. I haven’t found a good cure for this other than diversifying globally.