What's the best way to make money in a market like this?

Does the stock market going up really matter if all of the profit you make has been taken back by the falling dollar? For instance, if you invest $1000.00 in the stock market and a year from now your stock is worth $1250.00, you've made 25% for the year. However, if the dollar has fallen 25% in that same year you have really lost money instead of making it. That same $1250.00 would actually be worth only $937.50. For those that believe you'll have more, please explain your rational. Also, I would like to know how you are making money in this market. I think Euros or Gold would be safe, but I'm not sure. I want to avoid the falling dollar trap as well as make money. Thanks.

Greg R. - Seems to be some good advice so far from everyone. I know housing prices are coming down, but how about land values? I think it was Ben Franklin that said there's only so much of it and it's always a good investment. With our population increasing all the time due to increasing age, illegals coming into the country, and the threat of the North American Union wouldn't it be a good idea to buy land now?

I agree with you 100%.

Inflation is running much higher than the government statistics indicate. The falling dollar is causing prices of everything to rise. It's not that prices are rising, it's that the value of the dollar is falling so it takes more of them to purchase the same thing.

The government inflation numbers do not show the problem. The reason is that politicians like to report good numbers to the public.

Let me explain.

The unemployment rate is much higher than the government numbers. The formula for unemployment only counts people who are collecting unemployment benefits. As we all know, unemployment benefits are only temporary and run out after a few months. Once they run out, if you haven't found a job, the government's numbers don't count you as unemployed, even if you are still unemployed.

Additionally, I'm self-employed and I never qualify for benefits, even if I have no work.

There are millions of subcontractors in the building industry in a similar situation. Millions have no work, but they never show up in the government statistics.

Likewise, the formula for inflation is decietful too. There is a thing called "hedonic indexing". Basically, they take a price increase and attribute it to an improvement in quality, and don't count the increase.

Let's say that last year a new Nissan Maxima sold for $24,000. This year the same model sells for $26,500, a 10% increase. With hedonic indexing, by the government's formula there would be no price increase because this year's model has some quality improvements and it is a better car, therefore the price increase is due to those improvements and not inflation.

Presto! Inflation no longer is a problem, and the politicians can report happy numbers to the public.

However, as you and I know, college tuition, food, insurance, gasoline, heating expenses, movie tickets, etc. are going up in price much faster than the official government statistics indicate.

And you might start with $1000 in the stock market, and next year that stock may be "worth" $1250, but with the fall in the value of the dollar, the $1250 will purchase less next year than your initial $1000 will purchase now.

Gold is the answer.

There is an approximate 20.5 year cycle that swings back and forth between paper assets (stocks, bonds, certificates of deposit, etc) and physical assets (gold, oil, farmland, other precious and industrial metals, etc). In 2001, that cycle just shifted in favor of physical assets. The previous peak for physical assets had been in 1980. From 1980 to 2001 it was the cycle in favor of paper assets.

From 2001 until approximately 2022 look for physical assets to out-perform paper assets.

Gold is not a liability on anyone's books. It stands alone. It is the most liquid asset on earth. The trend for gold will be up for the next 15 years. This does not mean that there will not be ups and downs, but if you look at yearly charts, it will be obvious that the direction is up.

I wish you well.

There are plenty of investments to make during the dollar depreciation. 1st is invest in companies who benefit from dollars going down. That is companies who export a lot outside the country. They get currencies from other countries, that is why companies such as Apple have made a good quarter recently. They site growth in foreign countries as a reason. Im sure you have noticed others such as the transportation sector going up.
2nd invest in companies with High growth potential and little to no debt. They grow faster than BlueChips and become more valued during times of slowdown because they are still growing at a solid rate.
Last look at gold now, it is at its alltime high. But if you look at it over the long run, it has returned very little compared to stocks. I would invest smartly in the stock market. The dollar will turn around in a yr. Unless you have over a million dollars to put into Euros, you really will not get much in return. Also when the US goes into resession others seem to follow.

buy gold.

try http://goldenbullstocks.com