CliffEdge wrote:Yes I was going to ask why currency exchange rate variation doesn't affect lifestrategy 100 for example, which I have invested in. It seems to have gone up a bit recently but has significant allocation to US shares. So there must be significant exposure to dollars in there, which I therefore already have?
Yes, of course, it has a large weighting to the US, if you look at its holdings. US Equity Index fund + S&P 500 ETF + part of FTSE Developed Word ex-UK. https://www.vanguardinvestor.co.uk/investments/vanguard-lifestrategy-100-equity-fund-accumulation-shares/portfolio-data
CliffEdge wrote:I may be pessimistic but I just don't see what's so wonderful about Britain in the eyes of the rest of the world?
Ah, but "in the eyes of the rest of the world" is the key. You've got to consider not only your view but also that of the rest of the market. In other words, is your pessimism already in the price, 'cos the rest of the market agrees with you? (Personally I have no idea!)
CliffEdge wrote:I read somewhere that the whole UK stock market is worth less than Tesla. That makes the US a force to be reckoned with and probably best to be in.
Tesla no. But if you look at the portfolio of a world tracker, say VWRL, you'll see that Apple+Microsoft is the equal 2nd largest "country" in the world, equal to Japan. And Apple alone is 5th, after the USA, Japan, China and the UK. https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-all-world-ucits-etf-usd-distributing/portfolio-data
But again, does that indicate that it's a place to be, or that it's all already in the price and is overvalued? (Again, I have no idea!)
CliffEdge wrote:Reading the excellent replies here, it seems that buying TP05 is effectively exchanging pounds for dollars.
And so is TIP5 or any other US$ based investment if you're a sterling based investor!