If the USD becomes weaker compared to EUR in the future, would it be wise for a European investor to buy US stocks?
I imagine the following scenario:
I buy 100 Shares of a company at 1$ each. Let's assume, that at the moment 1$ = 1€.
One year later my shares are worth 110$. But at that time, 1$ = 0.8€. So when I sell my shares I receive 110$ = 88€ and have actually lost money, despite my investment producing gains.
Is this whats going on right now? Is the dollar weaker now, because of inflation and all the "gains" we see in the US are in a big part just inflation? There was news, that suggested that the US government wants to weaken the dollar in order to increase export. This mechanism works for buying things now, but has the opposite effect for investors correct? So this will actually decrease foreign investment?