PS,
If dollar does lose value drastically then the worst affected asset will be cash/CDs. When currency loses value, it results in assets demanding more currency to compensate for the decrease in its value. However, I think we may have already seen most part of that scenario pass by us in last 4-5 years when dollar slumped 35%-40% and asset prices rose up in response (Gold/RealEstate). The stage ahead of us should be a deflationary period assuming we have strong Fed policies. If that is the case then I agree with you that cash will be king in that period.
I am interested to learn, how dollar cost averaging is a bad idea in the face of a losing dollar, as I didn’t think about this from devaluing currency point of view. To me, dollar cost averaging is simply a mathematical tool, a smoothing low pass filter technique to minimize/filter out short term volatility for long term, in cyclical markets. You can apply it to buy gold/euros/stocks or anything. The basic assumption there is that you cannot time markets over long spans of time and so you choose to buy at an average between peak and trough. In the long term, that average keeps moving up with markets. Appreciate your input.
Also, when do you plan to to get off from your CDs and enter the markets with all the cash? What if the markets don’t come down or maybe don’t come down by as much as you expect or maybe come down much more than what you expected?
