Is the US dollar a good investment?

Question

is the US dollar a good investment? when all the trouble with iraq dies down the dollar should re stabalize?
somebody let me know? alternitively of a better investment? long or short term?

Answer 1

No, investing in cash is never a good idea. The dollar is devalued year after year without fail due to inflation (and other factors). You should at least try to earn interest on your money (enough to surpass inflation).

Answer 2

dont invest in the dollar the american economy is struggling... however the dow jones and the standard and poor's index, which are indices that are composed of large cap and med cap companies, have been performing sightly better recently. Investing in a commodity such as cash or eurodollars is not a way to make money as the return is very small compared to that of securities/ equitys. If you have a small some of money the best thing to do intially is to try and find a product that has a tax free shelter, in the Uk this is known as an ISA.. im pretty sure in the states you have something similiar. This is the first step that you should make if you are wanting to create a portfolio.. as any gain with regards to the cash side of things is tax free however the equity is open to capital gains dependable on you tax bracket. If not this then some form of investment trust....and find a good fund manager that has a diversified portfolio and a good forecast on growth

Answer 3

A pretty safe long-term investment is equities (shares), especially in blue-chip companies. Long-term, by the way, is 10 years or longer. The year-on-year return of the Footsie100 averages 12-13% annually, the Dow-Jones equivalent similarly.

A spread of companies, at least ten, is better than one or two, to spread the risk and if you do not have a substantial amount of capital to invest from the start, a monthly savings plan into a Footsie100 tracker provides the advantage of pound-cost averaging to your investment plan until you build up a reasonable capital sum. Thereafter minimum investments of £1,000 per company reduces the initial costs; the more you buy the less you pay per share to purchase.

Do not start unless you know for certain that you can carry through your investment programme for the requisite term. Stopping a monthly plan will cost you money, having to sell shares when the market is low will cost you money; buy low & sell high.

Putting money into e.g.dollars is not investing it is gambling. Only gamble if you can afford to lose money!

Answer 4

Probably not, as the famous twin deficits - balance of payments and the government's fiscal deficit are still extremely large. Essentially the Bush regime is doing what Lyndon Johnson did...financing a huge military operation and at the same time financing an enormous social agenda..in Johnson's case the Great Society which threw money at social problems, in Bush's case tax cuts for the rich. Johnson's led to major inflation and eventually a bust and a declining dollar. Bush will end up in a similar fix. What has saved him until now is (a) increasing productivity in the US (b) China's willingness to hold dollars. Neither is infinite.

Answer 5

It´s a good investment. The price will fluctuate on a daily basis. The million dollar question is - When to buy and to sell, for maximum profit.
You have short term chart buying and selling signals, and long term as well.
Get involved with the professionals in case you are not sure what to do.. Recommendation - following site:
http://www.eusei.com/pessoal/INVIVO_AGENCIES.html
Good luck

Answer 6

No. The US Dollar is a terrible long term investment until we begin to stop printing so many of them and adding to our debt so recklessly. It will have temporary bear market rallies and it is often compared to other currencies like the Euro, which is terrible also but probably not quite as terrible as the USD.

Answer 7

Generally, a currency is not an "investment," but rather a trading vehicle -- monetary exchange.

I suppose you could "invest" in Iraqi Dinars on a longshot, but the six major currency pairs are fairly stable and have limits.

From a traders standpoint, here's a good article on the US Dollar.
http://news.tradingcharts.com/futures/7/9/82926397.html

Answer 8

No. The US$ has been going down and will keep on that course.

For a long time the US has been spending far more money than she has been earning and is in huge debts and getting deeper all the time. It cannot go on for much longer and sooner or later the Chinese, Japanese, Muslim and other creditors will call in their loans.
Acting as the world's policeman has its consequences.

Answer 9

You can't invest in the dollar as it appears the intent is to weaken it. It is far better invest in American companies for their ingenuity.

Answer 10

No way, the dollar is weekening every month .. bad idea