Declining Dollar ... What to do?

[MJ DeMarco]

Anyone invest in currency ETF's such as the Rydex offerings? FTA, FTE, etc.

The dollar is doing poorly worldwide and the options to take advantage of a declining dollar are buying into foreign currencies, foreign companies, or companies with foreign exposure (like McDonalds, Coke), etc.

The ETF's give investors the opportunity to invest in the currency markets without having actual access to the currency market.

Anyone use these? I haven't but am looking to move money into the Euro.

 

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[kimberland]

Since I'm Cdn,
I'm taking the opp to buy some U.S. companies.

I prefer individual companies over ETF's
because I like to have the security of other upside.

So I'll buy U.S. companies that are undervalued in U.S. funds
then add on the benefit of the exchange.

Lessens the odds of a loss
and provides the possibility of a double gain.
Those are the odds I like.

: )

 

[RaceDriver]

An interesting question for those who trade in ForEx:

What do you think the net impact would be if China decided to allow their currency to float vs. the dollar?

I think it's clear that in today's world the dollar would fall relative to the renminbi, but where would the Euro come out in such an exchange?