Dollar Dropping

[jimmyle]

If the dollar falling is true. Is buying foreign mutual fund a good move?

For example, if I buy a mutual fund in Euro. And that mutual fund price remains the same but the Euro gains 10% on the dollar. Does it mean that I gained 10%?

Thanks for your advice.

[Eugene]

[quote=jimmyle]If the dollar falling is true. Is buying foreign mutual fund a good move?

For example, if I buy a mutual fund in Euro. And that mutual fund price remains the same but the Euro gains 10% on the dollar. Does it mean that I gained 10%?

Thanks for your advice.[/quote]

If the mutual fund price remains the same, then yes.

Whether it’s really going to remain the same, that’s a big assumption that needs to be justified.

For example, the 10% drop in the dollar may not result in a matching change in dollar-denominated stock value of Airbus, because cheaper dollar will allow Boeing to steal some market share from Airbus.

Also, if you’re expecting some kind of catastrophic change (a collapse), that would most likely result in economic slowdown and lower asset prices worldwide. So, it’s best to invest in individual currencies and short-term bonds.

[Eugene]

[quote=jimmyle]If the dollar falling is true. Is buying foreign mutual fund a good move?

For example, if I buy a mutual fund in Euro. And that mutual fund price remains the same but the Euro gains 10% on the dollar. Does it mean that I gained 10%?

Thanks for your advice.[/quote]

If the mutual fund price remains the same, then yes.

Whether it’s really going to remain the same, that’s a big assumption that needs to be justified.

For example, the 10% drop in the dollar may not result in a matching change in dollar-denominated stock value of Airbus, because cheaper dollar will allow Boeing to steal some market share from Airbus.

Also, if you’re expecting some kind of catastrophic change (a collapse), that would most likely result in economic slowdown and lower asset prices worldwide. So, it’s best to invest in individual currencies and short-term bonds.

[Eugene]

[quote=jimmyle]If the dollar falling is true. Is buying foreign mutual fund a good move?

For example, if I buy a mutual fund in Euro. And that mutual fund price remains the same but the Euro gains 10% on the dollar. Does it mean that I gained 10%?

Thanks for your advice.[/quote]

If the mutual fund price remains the same, then yes.

Whether it’s really going to remain the same, that’s a big assumption that needs to be justified.

For example, the 10% drop in the dollar may not result in a matching change in dollar-denominated stock value of Airbus, because cheaper dollar will allow Boeing to steal some market share from Airbus.

Also, if you’re expecting some kind of catastrophic change (a collapse), that would most likely result in economic slowdown and lower asset prices worldwide. So, it’s best to invest in individual currencies and short-term bonds.

[Eugene]

[quote=jimmyle]If the dollar falling is true. Is buying foreign mutual fund a good move?

For example, if I buy a mutual fund in Euro. And that mutual fund price remains the same but the Euro gains 10% on the dollar. Does it mean that I gained 10%?

Thanks for your advice.[/quote]

If the mutual fund price remains the same, then yes.

Whether it’s really going to remain the same, that’s a big assumption that needs to be justified.

For example, the 10% drop in the dollar may not result in a matching change in dollar-denominated stock value of Airbus, because cheaper dollar will allow Boeing to steal some market share from Airbus.

Also, if you’re expecting some kind of catastrophic change (a collapse), that would most likely result in economic slowdown and lower asset prices worldwide. So, it’s best to invest in individual currencies and short-term bonds.

[Eugene]

[quote=jimmyle]If the dollar falling is true. Is buying foreign mutual fund a good move?

For example, if I buy a mutual fund in Euro. And that mutual fund price remains the same but the Euro gains 10% on the dollar. Does it mean that I gained 10%?

Thanks for your advice.[/quote]

If the mutual fund price remains the same, then yes.

Whether it’s really going to remain the same, that’s a big assumption that needs to be justified.

For example, the 10% drop in the dollar may not result in a matching change in dollar-denominated stock value of Airbus, because cheaper dollar will allow Boeing to steal some market share from Airbus.

Also, if you’re expecting some kind of catastrophic change (a collapse), that would most likely result in economic slowdown and lower asset prices worldwide. So, it’s best to invest in individual currencies and short-term bonds.

[MountainBound]

PartyPup,

Ok, here’s my problem. I happen to agree with your forecast of upcoming doom, however so far the US Fed has been able to ward off the fundamentals and continue with the Wall Street corruption. It seems like with the MSM propaganda machine they can continue the ruse forever.

Now, tell me in simple terms, how does one go abouit protecting their cash? Doesn’t seem like 100% metals is a sure bet.

Give it to me straight.

Thanks

[MountainBound]

PartyPup,

Ok, here’s my problem. I happen to agree with your forecast of upcoming doom, however so far the US Fed has been able to ward off the fundamentals and continue with the Wall Street corruption. It seems like with the MSM propaganda machine they can continue the ruse forever.

Now, tell me in simple terms, how does one go abouit protecting their cash? Doesn’t seem like 100% metals is a sure bet.

Give it to me straight.

Thanks

[MountainBound]

PartyPup,

Ok, here’s my problem. I happen to agree with your forecast of upcoming doom, however so far the US Fed has been able to ward off the fundamentals and continue with the Wall Street corruption. It seems like with the MSM propaganda machine they can continue the ruse forever.

Now, tell me in simple terms, how does one go abouit protecting their cash? Doesn’t seem like 100% metals is a sure bet.

Give it to me straight.

Thanks

[MountainBound]

PartyPup,

Ok, here’s my problem. I happen to agree with your forecast of upcoming doom, however so far the US Fed has been able to ward off the fundamentals and continue with the Wall Street corruption. It seems like with the MSM propaganda machine they can continue the ruse forever.

Now, tell me in simple terms, how does one go abouit protecting their cash? Doesn’t seem like 100% metals is a sure bet.

Give it to me straight.

Thanks

[MountainBound]

PartyPup,

Ok, here’s my problem. I happen to agree with your forecast of upcoming doom, however so far the US Fed has been able to ward off the fundamentals and continue with the Wall Street corruption. It seems like with the MSM propaganda machine they can continue the ruse forever.

Now, tell me in simple terms, how does one go abouit protecting their cash? Doesn’t seem like 100% metals is a sure bet.

Give it to me straight.

Thanks

[Eugene]

FYI, 100% metals is a 100% losing bet. Precious metals are in a bubble that has yet to deflate. I expect a 50% decline in the value of gold and a 30% decline in the value of silver by the end of 2010.

Some metals are fairly valued. You could buy a few tons of titanium scrap (~$3000/ton) and store it in a shed in your backyard.

[Eugene]

FYI, 100% metals is a 100% losing bet. Precious metals are in a bubble that has yet to deflate. I expect a 50% decline in the value of gold and a 30% decline in the value of silver by the end of 2010.

Some metals are fairly valued. You could buy a few tons of titanium scrap (~$3000/ton) and store it in a shed in your backyard.

[Eugene]

FYI, 100% metals is a 100% losing bet. Precious metals are in a bubble that has yet to deflate. I expect a 50% decline in the value of gold and a 30% decline in the value of silver by the end of 2010.

Some metals are fairly valued. You could buy a few tons of titanium scrap (~$3000/ton) and store it in a shed in your backyard.

[Eugene]

FYI, 100% metals is a 100% losing bet. Precious metals are in a bubble that has yet to deflate. I expect a 50% decline in the value of gold and a 30% decline in the value of silver by the end of 2010.

Some metals are fairly valued. You could buy a few tons of titanium scrap (~$3000/ton) and store it in a shed in your backyard.

[Author]

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