Replies to post #31835 on A.I.M. Users Bulletin Board (AIMUSERS)

[karw]

Hi Ls,

You'll generally get around what you would have done from investing in a domestic PP than what you get from investing in a foreign PP. The currency changes sort of balances it all out.

Is that true? The graph for the UK PP vs the US PP does support it.
Could it be that the Pound and the dollar are very correlated?

But the US PP is a 9% grower and the EU PP is also a 9% grower, both on the average.
However the US$ vs the Euro goes from 0.84$ to 1.6$
Would the arbritage opportunity be similar to the UK/US one?
During the time the Euro went from US$ 1.5 to US$ 1.25 both PP's grew 5-10%.


The tax situation of course is very important. That is less so for a Dutch investor, because we pay 1.2% of capital per year, and it doesn't matter where you invest, and also no tax on transactions or capital gains tax or dividend tax.

Kind Regards,K

[karw]

Hi Ls,

Looking at my virtual AIM buy orders in the US$, the last one was in March 2008 and since then waiting for an AIM buy order in the Euro.

March 2008 is just a bit before the start date of your graph comparing UK vs US. We see some divergence in September 2008.

Is it possible that the divergence was getting bigger going back from September 2008?

Kind Regards,K