How to protect against massive inflation and upcoming fall of dollar

[one_muggle]

If you want international exposure for the more conservative portion of your portfolio, take a look at American companies with broad international reach, and/or some foreign companies with the same.
JNJ, BUD, Motorola, Coke, McDonalds, Toyota…
Part of the reason for the quick rise in the blue chips yesterday was the devaluing of the dollar, which made the international income from the big boys worth more dollars.
Companies like JNJ–all other things being equal (big assumption!)–likely will keep their US business steady, dollar for dollar, during a downturn. While their Euro income, and international growth will give you some hedge against the falling dollar.
While you are waiting for the recovery, learn a Chinese dialect Dongyi, you’ll be set for the new, new economy ;^)
Joi wooi

[Coronita]

Motorola

from an investment perspective is gamble right now. There product mix stinks, Nok and the Korean handset manufacturers are kicking their ass, and after the razr, they have no really new revolutionary phones. The CEO lacks vision and people want him to be removed.

 

That said, I recently picked up some MOT shares on the news that Carl Icahn took a sizable portion and on the hopes that MOT's next quarter will be bad enough that the CEO gets the boot.

Other thing I'm considering is BEA software, which Icahn also took a 8.6% stake. Unfortunately, the BEA's management is saying, BEA isn't for sale. Too bad, because their app server is actually pretty good, better than jboss, websphere, or the oracle crap. Icahn wants it to be sold to a larger company.

Also, I think Tibco is prime candidate for a takeover (all it's previous competitors have been bought).

 

 

 

[mixxalot]

What about S&P US Index funds?

Most of these companies are large US multinational corporations anyways. They have trillions to make and lose. I do invest international but dont need to do 100 per cent yet.

[(former)FormerSanDiegan]

As for US companies, I like the large, dividend paying companies with significant foreign sales. These tend to benefit somewhat from a weaker dollar. Examples … PG, GE, JNJ.

[g2006]

Is there a simple method to short the US dollar like ETF or a mutual fund.

[(former)FormerSanDiegan]

Is there a simple method to short the US dollar like ETF or a mutual fund.
Yes. UDN is an ETF that shorts the dollar.
However, foreign stocks may offer more upside because you presumably get both the growth in the company, plus a boost from a declining dollar.

[mixxalot]

Cool! I need to put 20-50k a year into this fund and make some real hedge against losing money with the plans of the world bankers. I say if you cant stop the criminal cartel called the FED and world bankers, might as well cover your bases.

[bsrsharma]

short the US dollar

Dangerous game to play, in my opinion. If the Iranians explode a nuke or throw a missile at Israel, the whole world will jump back on $ and you are toast. Or if Al Queda gets control of nukes in Pakistan (there is only a weak dictator standing between them now), the markets will just discard other currencies in favor of $. Currency speculation is for grown ups. You should understand the global dynamics far too well to play and win.

[(former)FormerSanDiegan]

bsrsharma –

I agree. I would not hold a huge portion in UDN. The dollar has been on a decline for a significant period. At some point it may turn around. That’s why it is a fraction (less than 5%) of my portfolio. The Euro-zone is at a different point in the business cycle. The US is in slow-down/recession mode well ahead of Europe. Consider what happens when the US is recovering from recession as Europe heads into one. What happens to the Dollar vs Euro when that happens ? US rates going up while Euro rates going down means a strong dollar vs Euro. It will happen again …

[Author]

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