Is it a good idea to convert savings to Euros to preserve value? If so, what is the best way to convert a large amount, say $60-70k into Euros without commissions?
I am not impressed by Euro as a better store of value. Europe seems as messed up, if not more, than U.S. Investments in commodities like oil, grains, industrial metals, even some quality real estate at good value may be better.
I have Euros on FXE. It can bought like any stock, no additional fees. It trades at the Euro price and pays interest. It is like a CD in Euros. Buy GLD for gold, SLV for silver, USO for oil, etc. These type of funds are the easiest way to trade metals and commodities. It may be late now to gain much from gold and Euro but there are not many options. I have money saved for a down payment so it does not really matter if the US Dollar devaluates since home prices are in dollars. But I also have other savings, to hedge agaist inflation I though of buying stuff I will always need, like 100 pounds of salt, 1000 socks, etc. It may be better to spend the money now that just watch it loose it's purchasing power. Now you have a good excuse to buy that 63" plasma. In a couple of years you may not afford it.
Yes, our economy is trashed. Be we already know that the fed is done cutting rates too.I 'm just wondering if it's now time for the european banks to start to come clean so to speak. I'm sure a lot of them are knee deep in this subprime debacle, and yet are sort of stalling. It's just a matter of time that the euro gets wacked imho.
At this point I do not think converting to euros will help - dollar is 1.59 to the euro - almost the lowest ever. Plus, I think the new phrase "too big to fair" works with the dollar and the US economy.
The world cannot afford for the US dollar or economy to fail. The FED has created another bubble in commodities deliberately to take some of the pressure off of the real estate calapse. Two percent interest rates in a 6 percent inflation environment is deliberate. The FED probably wanted a stock market bubble, but un-intended consequences made it a commodities bubble.
The FED is counting on the ECB to keep inflation in reasonable limits with 4.5 percent interest rates while allowing the US to try and bubble its way out of a depression. The ECB is allowing this because the world cannot afford for the US to fail. Inspite of globalization, the US is too much of the worlds economic engine and a US failure would spin the world into decades of economic disaster. But knowing this helps me not, because I still have no place to put my money.
The stock market is headed down, inverse funds like SDS and SKF are very volitile, the FXE and FXF the currency exchange funds are up and down like an elevator.
The FED probably wanted a stock market bubble, but un-intended consequences made it a commodities bubble.
The FED got exactly what they wanted. They've devalued the dollar enough to stimulate exports and the "real" economy. It's not their fault that we also happened to stumble upon peak oil. Collapsing housing bubble + peak oil = the perfect storm. It's a wonder we're still managing positive GDP growth.
There is some bubbliness in some commodities (gold is most certainly a bubble, oil and agriculturals are less so) but there are also solid fundamental reasons why commodities cost as much as they do.
I don't think they can afford to devalue the dollar much further.
inverse funds like SDS and SKF are very volitile
Incidentally, do you know that inverse funds are backed by Fannie Mae bonds? If Fannie Mae fails (not that it's likely to happen), SDS and SKF could take a big hit.
A little late for that i think. I wouldn't think europe's economy is going to be doing that much better.
This is a global problem, not a US problem. Converting to Euros is a serious gamble.
To preserve value, perhaps rice, beans, bullets, and water purifiers? Gold? Silver? (I like this.)
Or prayer... whichever you please.
I am not impressed by Euro as a better store of value. Europe seems as messed up, if not more, than U.S. Investments in commodities like oil, grains, industrial metals, even some quality real estate at good value may be better.
swiss francs
I would second FLU A little late for that i think Inverse ETF's would be a good choice. Accepting that you are going to be poorer is also good.
Josh
I have Euros on FXE. It can bought like any stock, no additional fees. It trades at the Euro price and pays interest. It is like a CD in Euros. Buy GLD for gold, SLV for silver, USO for oil, etc. These type of funds are the easiest way to trade metals and commodities. It may be late now to gain much from gold and Euro but there are not many options. I have money saved for a down payment so it does not really matter if the US Dollar devaluates since home prices are in dollars. But I also have other savings, to hedge agaist inflation I though of buying stuff I will always need, like 100 pounds of salt, 1000 socks, etc. It may be better to spend the money now that just watch it loose it's purchasing power. Now you have a good excuse to buy that 63" plasma. In a couple of years you may not afford it.
Yes, our economy is trashed. Be we already know that the fed is done cutting rates too.I 'm just wondering if it's now time for the european banks to start to come clean so to speak. I'm sure a lot of them are knee deep in this subprime debacle, and yet are sort of stalling. It's just a matter of time that the euro gets wacked imho.
At this point I do not think converting to euros will help - dollar is 1.59 to the euro - almost the lowest ever. Plus, I think the new phrase "too big to fair" works with the dollar and the US economy.
The world cannot afford for the US dollar or economy to fail. The FED has created another bubble in commodities deliberately to take some of the pressure off of the real estate calapse. Two percent interest rates in a 6 percent inflation environment is deliberate. The FED probably wanted a stock market bubble, but un-intended consequences made it a commodities bubble.
The FED is counting on the ECB to keep inflation in reasonable limits with 4.5 percent interest rates while allowing the US to try and bubble its way out of a depression. The ECB is allowing this because the world cannot afford for the US to fail. Inspite of globalization, the US is too much of the worlds economic engine and a US failure would spin the world into decades of economic disaster. But knowing this helps me not, because I still have no place to put my money.
The stock market is headed down, inverse funds like SDS and SKF are very volitile, the FXE and FXF the currency exchange funds are up and down like an elevator.
The FED probably wanted a stock market bubble, but un-intended consequences made it a commodities bubble.
The FED got exactly what they wanted. They've devalued the dollar enough to stimulate exports and the "real" economy. It's not their fault that we also happened to stumble upon peak oil. Collapsing housing bubble + peak oil = the perfect storm. It's a wonder we're still managing positive GDP growth.
There is some bubbliness in some commodities (gold is most certainly a bubble, oil and agriculturals are less so) but there are also solid fundamental reasons why commodities cost as much as they do.
I don't think they can afford to devalue the dollar much further.
inverse funds like SDS and SKF are very volitile
Incidentally, do you know that inverse funds are backed by Fannie Mae bonds? If Fannie Mae fails (not that it's likely to happen), SDS and SKF could take a big hit.