If the us dollar continues to become weaker what can we buy which retains value? Gold? I want to live in foreign country in the future however at present the dollar can buy many things in brazil and thailand etc. However this may not be the case for long. What is a good investment to keep my US money from depreciating?
2007-08-01 08:28:29 · 8 answers · asked by ab 1 in Business & Finance ➔ Investing
you can invest in foreign stock markets or foreign bond markets. You can do this easily through ETF (electronically traded funds) which can be traded through your stock broker much like any other stock. The advantage of investing in something like oveer gold or silve is that you particpate in any stock market increases or in the case of bonds receive coupons or interest while your funds are iunvested in foreign currency.
This means if the USD weakens your funds are worth more in USD terms
2007-08-01 08:42:24 · answer #1 · answered by blogger 2 · 1⤊ 0⤋
2
2007-08-01 08:41:48 · answer #2 · answered by [(:] 2 · 0⤊ 1⤋
Gold is a poor hedge because many factors make it bounce around besides exchange rates.
An easy way to hedge against the dollar falling against the euro is to buy an exchange-traded fund called Euro Currency Trust (symbol FXE). The downside is that every dollar you put in it is tied up in hedging, so you couldn't invest it anywhere else (but if it's in a margin account you can borrow against it). I don't know of an equivalent fund for emerging markets. If you're really serious about this you can put a little money in futures or futures options to hedge against any currency you like, but this would get expensive. A third option is convert your dollars into several different currencies and buy stocks or bonds directly in the countries you like. Interactive Brokers will let you trade in several countries from one US-based account, though I don't know about Brazil and Thailand.
2007-08-01 09:11:06 · answer #3 · answered by Houyhnhnm 6 · 0⤊ 0⤋
If you want to have dollars, but want to be protected (at least somewhat) from a weakening dollar, consider TIPS (Treasury Inflation Protected Securities).
These are USA T-bills that index with inflation.
As the dollar gets weaker, foreign goods become more expensive in the USA, and domestic goods get cheaper overseas.
This means that imported goods (a large portion of what you buy) gets inflated.
Domestic factories get busy filling foreign orders, and also raise prices.
Overall, a weak dollar should result in higher inflation, so TIPS may be a good choice.
-->Adam
2007-08-01 08:46:53 · answer #4 · answered by great_and_mighty_adam_levine 4 · 1⤊ 0⤋
KWD, MTL, BHD, OMR, CYP, GBP, LVL, JOD or EUR (In that order)
I suggest you to open a brokerage account at E*Trade and invest in Foreign Stocks in Canada, France, Germany, Hong Kong, Japan and the United Kingdom.
I am a Portfolio Manager with over a decade of experience in the Stock Markets and you can contact me if you need a more detailed answer.
2007-08-01 08:57:18 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Europe is in just as much financial hot water as the US, maybe more. I think that the USD is still pretty strong.
2016-05-20 01:40:25 · answer #6 · answered by tabetha 3 · 0⤊ 0⤋
Gold. I invest in both gold and silver. Silver because it is easier to buy more in quanity.
2007-08-01 08:37:44 · answer #7 · answered by Anonymous · 0⤊ 0⤋
try inflation indexed treasury bills. They will earn an interest rate that increases with inflation.
2007-08-01 12:22:17 · answer #8 · answered by Alice Lockwood 4 · 1⤊ 0⤋