Diversification is the only golden rule when it comes to investments.
One of my themes over the next few years will be the drop of USD. Twin deficits coupled with 1) a slow down of the economy and 2) the world’s central banks saying they’ve got enough USD in their reserves already and therefore will reduce purchase of US treasuries. In 2005, USD rebounded due probably to 1) a tax break for US corporations to repatriate profits back to the US but this is now over and 2) a technical rebound from the past several years’ decline.
I like currencies with a commodity theme and that includes Canadian Dollar, Australian Dollar & New Zealand dollar.
