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If you expect the dollar to devalue, where is better to invest?


I think the dollar will decline in value, either slowly or dramtically. I do not want to specifically invest in foreign exchange.

With that in mind, where would be better to invest -
1 A mutual fund with all its holding in foreign countries stock markets.
2 A foreign company that is listed on the NYSE (and purchase it through there).
3 Other... Does anyone have any other ideas?

Thanks!

Since when did a devalued Dollar make U.S. stocks a bad investment? Do they correlate? I don't think so. Almost all of the Dow 30 are international companies, along with thousands of others, and they will benefit as well.

A weaker Dollar means we are more competive overseas.

Unfortunately, I think the Dow has reached a top, but it has very little to do with the Dollar strength or weakness.

Yes, the foreign currencies have been in screaming uptrends since March, and this will probably continue.

A mutual fund is a bad idea if the the stock market declines, since funds are always "in" the market. Have you noticed that world markets tend to trend together? The Nikeii was down 225 last Friday. A bad economy here means a bad economy everywhere. Investing overseas just complicates the matter, and solves nothing.

If you're a big institution with billions of dollars to invest, and you only need to beat other institutions by 1% or so to get a feather in your cap with the boss, then yeah, look overseas for other markets to put so much money to work and divest it. But for you as an individual to shift your focus overseas as your primary investment makes no sense, unless you know at least as much about that foreign market as you do our own.

There's two sides to every market. Short U.S. stocks if you think they are going down.

Why go to a foreign country where you know nothging about their gov't, their interest rates, their stability, their economy, their cultural preferences, etc?

I want this question, not the other. Report It

Maybe your not getting alot of answers to this question because you already seem to have the best answers inside the question.

Put another way, I agree that the dollar will probably devalue versus other currencies. I believe that the best options are the 2 you gave (mutual funds or individual stocks in other countries). I have no great other ideas.

I could ramble on about other considerations and what sectors (within other countries) you might consider, but I won't because thats not the question you asked.

So, I personally think you have a really good idea/ point here. I think you should invest in other countries, and think the two options you gave are the best ways to do it. Good luck.

Gold & Silver - both in Bullion bar + coin form.

put money in a company like sony or mitsubishi then they wont do bad and will increase your valueee

Well it depends. Are you comfortable with stocks? If yes then go with stocks. But if your not that comfortable and knowledgable about stocks itself, then maybe its better to invest in an mutual fund. And as the any other ideas part well gold and silver are two raw materials which people look to when the value of the dollar decreases.

Lets say u are correct that Dollar is going to get devaluated.

Lets take all ur options:
1) A mutual fund with all its holding in foreign countries stock markets.

Say u invested $100 in this MF. And lets suppose this MF invests in companies who sell there product to US. Now these companies will get less local currency. Cox dollar is devaluated. So they make less profit.
Ur money goes for a toss.

2)A foreign company that is listed on the NYSE (and purchase it through there)

Same answer as above.

Currency Ups and downs is benficial to you only, if you are hedging your investments. FX is like a financial tool, can use options or futures to hedge any big payments in the near future.

Not the way in which u are thinking.

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