How to protect against USD depreciation?

Question

Most people seem to believe that the US dollar is on a long-term downward trend. How can I protect my investments from this relative decline? If I am mostly invested in stocks and funds (ie, of multinational companies), will I be less affected?

Answer 1

Sell US dollars short.

Answer 2

You can park your money in the foreign currency that is appreciating against the dollar. You can buy t bills of the foreign country whose currecy is appreciating. When the slide is over you or before that you can reconvert back to the dollar with an appreciation in your holding of dollar. This is called carry trade which seems to be the reason the American Market crashed recently, the stocks I mean.

Answer 3

If you notice, When USD is in downturn trend, another financial instrument is always on the opposite side.

One of the way is to invest in Gold.....

Please do not take my advise and apply it immediately. Take it on your own risk, I do not give any investment advice.

As in any investment, there is always risk and you should be knowledgeable about what you are investing in.

Another way is to invest in Property and other precious metal.

Stocks and Funds, But you need to choose correctly, any stock that is affected by currency exchange is not a good stock to invest in.

Hope this helps

Cheers.

Leo

Answer 4

You can buy gold and silver, precious metals mutual funds such as TGLDX and VGPMX, or you can buy stocks which represent precious metals or mining companies such as GLD, GDX, CEF or SLV.

Answer 5

1) Buy EUR (NYSE:FXE) and JPY (NYSE:FXY)
2) Buy Foreign Stocks in GBP, (London Stock Exchange) JPY (Tokyo Stock Exchange) and EUR (Frankfurt Stock Exchange)

If the Stocks or Mutual Funds are in USD then you will take a big hit if the USD keeps falling.