Another thing about commodities is that technology is always working to to make finding new resource pools,better refining ways,finding alternative materials,etc and this works against commodities in the long run. I also discounted buying gold when below $60 because inflation numbers were down but now this dolar weakness is pushing gold/oil/silver. Did anyone noice that oil is quitely back up above $63 and seem to be breaking out of its around 60 range. If it keeps going then inflation may creep back up and Fed won’t be able to cut rates by March (which is what is driving the dollar weakness in short term).
BTW, another way of hedging against dollar maybe to invest in major exporters from the US. But I couldn’t find any stocks of big exporters that haven’t already moved in last 3 months. Any recommendations here? I tried to directly buy aussie/nz bonds from my broker(Schwab) but the fees are just too high. I think of international stocks as diversifying equity but not fixed income. International stocks are not hedge against dollar because most of these companies export to the US and will get hurt from weaker dollar and economic slowdown in US.
