I took my family to Switzerland for spring break and experienced the same painful lack of purchasing power that others have written about and the financial markets have demonstrated. The dollar's decline has been almost straight down, prompting investors to wonder if the bottom is near.
Today's announcement that Omaha, Nebraska-homebody Warren Buffett is taking a tour of Europe to look for investments is a resounding "NO." In the nineties, Mr. Buffett would reply to questions about global investing by stating that overseas investing was beyond his competence. Further, he would add that the U.S. was the location for thousands of opportunities and that if he couldn't find one competently in that pile, why look elsewhere. But that was back in the day of the strong dollar.
His annual reports are consistent in a cry against the weakening dollar. He is putting his money where his mouth is. After starting out with trades against the dollar, he has moved on to long term investing outside the U.S. - a serious indictment of current dollar-based policies and a caution for dollar-based investing.
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