facebookWhich country's stocks are the safest to invest in? I heard of this phenomenon of exchange rate risk before. - Seedly

Linda Tan

07 Jun 2019

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Stocks

Which country's stocks are the safest to invest in? I heard of this phenomenon of exchange rate risk before.

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Gabriel Tham

07 Jun 2019

Tag Team Member at Kenichi Tag Team

There is no safest country to invest in. Every country have their own risks.

Exchange rate risk is because if you are Singaporean, your main currency is SGD.

Example if you invest in say US stocks, you will bear the exchange rate fluctuations from both capital gains and dividends. Your actual net profit will be affected by the prevailing exchange rate that you decide to change back into SGD. But if you are fine with keeping USD and transferring it into a US account for future use when you travel to US, then its fine.

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