Home › Forums › Financial Markets/Economics › Holding cash reserves outside of the dollar
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August 10, 2007 at 8:24 AM #9790August 10, 2007 at 8:34 AM #72700bubba99Participant
One place to park dollars but tie them to foreign currencies are the foreign exchage traded funds like FXE, FXA etc. These funds trade at exactly the exchange rate times 100.
FXE is in euros and is currently trading at $136.89 and the exchange rate is 136.9/100 euros. Been in and out a couple of times, liquidity does not seem to be a problem. The fund holds euro denominated bonds and makes money on the interest. The stock price is tied directly to the exchange rate.
August 10, 2007 at 8:34 AM #72827bubba99ParticipantOne place to park dollars but tie them to foreign currencies are the foreign exchage traded funds like FXE, FXA etc. These funds trade at exactly the exchange rate times 100.
FXE is in euros and is currently trading at $136.89 and the exchange rate is 136.9/100 euros. Been in and out a couple of times, liquidity does not seem to be a problem. The fund holds euro denominated bonds and makes money on the interest. The stock price is tied directly to the exchange rate.
August 10, 2007 at 8:34 AM #72820bubba99ParticipantOne place to park dollars but tie them to foreign currencies are the foreign exchage traded funds like FXE, FXA etc. These funds trade at exactly the exchange rate times 100.
FXE is in euros and is currently trading at $136.89 and the exchange rate is 136.9/100 euros. Been in and out a couple of times, liquidity does not seem to be a problem. The fund holds euro denominated bonds and makes money on the interest. The stock price is tied directly to the exchange rate.
August 10, 2007 at 8:36 AM #72707JESParticipantIs gold a good way to play this?
August 10, 2007 at 8:36 AM #72832JESParticipantIs gold a good way to play this?
August 10, 2007 at 8:36 AM #72826JESParticipantIs gold a good way to play this?
August 10, 2007 at 9:21 AM #728494runnerParticipantE*trade will let you convert currencies (and buy in foreign exchanges) through their global trading platform.
August 10, 2007 at 9:21 AM #728564runnerParticipantE*trade will let you convert currencies (and buy in foreign exchanges) through their global trading platform.
August 10, 2007 at 9:21 AM #727314runnerParticipantE*trade will let you convert currencies (and buy in foreign exchanges) through their global trading platform.
August 10, 2007 at 9:30 AM #72739bsrsharmaParticipantI have put all my 401(k) into global/international mutual funds in the last 2 years and I am happier compared to say, previous 5+ years. You may look at a well diversified global index fund. Holding large $ assets now is like buying real estate in 2005-06.
August 10, 2007 at 9:30 AM #72858bsrsharmaParticipantI have put all my 401(k) into global/international mutual funds in the last 2 years and I am happier compared to say, previous 5+ years. You may look at a well diversified global index fund. Holding large $ assets now is like buying real estate in 2005-06.
August 10, 2007 at 9:30 AM #72865bsrsharmaParticipantI have put all my 401(k) into global/international mutual funds in the last 2 years and I am happier compared to say, previous 5+ years. You may look at a well diversified global index fund. Holding large $ assets now is like buying real estate in 2005-06.
August 10, 2007 at 10:57 AM #7277134f3f3fParticipantIf you’ve already got cash reserves outside the dollar, I’d hold onto them. A spread of currencies with the dollar being so weak makes sense. The temptation of course is to convert and reap the benefits, but then your left holding the baby if things go pear-shaped. Some predict the dollar gaining ground late next year. As far as US residents investing abroad, there are restrictions and tax implications.
August 10, 2007 at 10:57 AM #7289234f3f3fParticipantIf you’ve already got cash reserves outside the dollar, I’d hold onto them. A spread of currencies with the dollar being so weak makes sense. The temptation of course is to convert and reap the benefits, but then your left holding the baby if things go pear-shaped. Some predict the dollar gaining ground late next year. As far as US residents investing abroad, there are restrictions and tax implications.
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