High inflation will eat away the value of the dollar, so Peter Schiff of Euro Pacific Capital has recommended swapping U.S. stocks for overseas ones, especially those paying a nice dividend. A collapsing dollar should boost worldwide currencies, helping advance foreign stocks, he says. And as mentioned before, dividends produce reliable income even in inflationary times.
You're best off trusting a veteran manager to pick overseas stocks, so here are a couple of the best foreign stock-picking mutual funds: Oakmark International, which returned an average 9% a year over the past decade, looks for cheap stocks no matter their size or home country. The Wintergreen Fund, which buys distressed debt and cash-rich companies, is run by well-known value investor David Winters and is up 22% over the past year.
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