one thing IS guaranteed by the strong cut in interest rates by the fed.
the dollar IS not being supported at all by this country. what this means,
barring a global worldwide calamity which sends everyone scurrying to buy us dollars because of its inferred political safety, is that the us dollar must go down. simple as that. how much, who knows, but it must go down.
my major investments at the present time are in the japanese yen and gold.
i do not see that changing for awhile. other attractive options are:
resource (oil + metals) mutual funds from politically safe countries.
canada and australia come first to mind as their economies are influenced more by this than most other nations. one can make money either by their
currencies going up or by the resources appreciating (hopefully both).
one only loses if both the us dollar gets stronger AND the price of metals/oil
goes down.
any currency but the us dollar, although i would prefer economically and politically sound countries. you can probably even find funds that give you a
weighted average of ALL the other currencies.
realize that if one invests in gold or a foreign currency, one must make more
than the standard US interest rate just to break even compared to that investment option. with buying gold direct one has transaction or even storage costs to work into the equation too. this is why my preferred investment is the currency trusts trading on the NYSE (FXY for the yen).
in addition to having liquid markets, one also has the ability to sell future options against one's position thus turning one's investment into an income generating machine assuming that the underlying currency is not weak.
in the yen's case it is quite easy to earn 15-20% annualized returns with little risk investing in the yen as long as there is a some or even more appreciation in the japanese currency. hope this help.  |