I think i should move some of my money out of us dollars,to protect against the falling dollar and inflation?

Question

I think i should move some of my money out of us dollars,to protect against the falling dollar and inflation?

Answer 1

Investing in global companies or investing in stocks of companies overseas does the same thing.

Answer 2

I did that! I put it in Euros.

Answer 3

Question or statement?

Looking back this was a good strategy over the last couple of years.  The question is whether this is a good strategy going foward.  Of course nobody knows this, although there are a lot of opinions.

My opinion is that the USD is about as low as it will get, the Euro zone is now struggling with their own slowing economies, Gold is already pricing in inflaition so inflaition would have to continue to worsen to make any money there, oil has come of its highs by about $25 in the last couple weeks so this might be a place of opportunity if you think it goes back up, the Latin American currencies have already appreciated alot, the aisian currencies are generally to controled by their governments to look attractive to me.

My personal view is that I live my life in dollars so I keep the majority of my investments in dollars because it reduces my currency risk.  I do keep a percentage in international equities so I have exposure to other currencies through that as well as owning multi-national companies.  For me however pure play currencies are too much risk relative to the potential return.  I was exposed to other currencies over the last couple of years but do not see the return senario as good any more.

I could be completly wrong but I figure that since I live in dollars I am not really losing much if I stay in dollars either way but if I own other currencies I may gain or loose si right now I do not see why take the risk

Answer 4

beware of currency, buy precious metals,

Answer 5

I live in Canada, and our dollar is on the rise. :D

Answer 6

There are etf's that are currency plays. By buying a stock in same, you could take position in the euro, the yen, and others. Just google CURRENCY ETF'S. You buy these through your stock broker just like any stock. However the liquidity of these is thin, so you only want to buy with a limit order.

FXE and FXY are two such: the former is a euro play, the latter a yen trade.

The dollar has stabilized recently, and if the Fed actually raises interest rates, the dollar might go up.

You may be a little late to the falling dollar party.