Earlier in the week I discussed the declining dollar and one possible way to take advantage of the situation. The comments to that post were varied, from those who want to stock up on international stock, buy gold, to even thinking that we’ve hit a bottom and the dollar is headed back up. So, this seems like a good poll to determine what readers are doing.
Author: Jeremy Vohwinkle
My name is Jeremy Vohwinkle, and I’ve spent a number of years working in the finance industry providing financial advice to regular investors and those participating in employer-sponsored retirement plans.
I'm as well positioned with my investments as I think I can be, though I don't have much confidence that that will be enough. The most significant thing I am doing is that I am supporting Ron Paul for President. Rather than being a "nut", he is the only candidate who seems to have a grasp of finance beyond the smoke and mirrors blather of the Fed. His election would not prevent our having to deal with the bill that is going to come due to my children and grandchildren, but he is knowledgeable enough and honest enough to lead us out of what's coming.
I am buying more US stocks that have more potential growth overseas. I also purchased Canadian stocks that trade directly with American companies. I think ETF's won't provide as good as a return as the U.S. "best of breed stocks."
I like European and Pacific ETF's. You could also throw in some Emerging Markets to round things out.
I voted other, as I've got an outsider view. Your currently weak dollar means cheaper imports for many of the rest of us. The holidays can be relatively cheap this year for Canadians between buying straight from US retailers, and because many Canadian retailers are currently dropping prices to compete with cross border shopping.
My portfolio is already diversified globally, which is a wise move for everyone, and downright necessary for people living in smaller market countries with more variable currency.
I'm tempted to try trading currency, as the Canadian Dollar is currently strong, but I'm probably too much of a chicken.
I vote other;
I'm becoming more frugal (am not in the position to acquisition 24k gold bars or pump oil in my backyard so I can only do the small things).
I switched to shaving with a safety razor the old fashioned way over the mach3 way. The savings are immense ($1.54 for a pack of 10 blades at walmart each giving about 10 shaves, vs $10 for a 4 pack of mach3... lol!)
With most foreign markets not looking so great, Gold or currency trading seems to be the way to go. But also consider that we might be somewhere near the end of the dropping dollar. There is probably still more downside but the dollar has already dropped a lot.
Strong US based global companies are also still a good play.
Steve, thanks for mentioning FXE. I was actually unaware of these ETFs that track currency directly. This is very interesting! I need to look into these more.
I voted "nothing, part of the cycle", but I thought I should note that I've been putting a decent amount in international investments for several years now.
I bought FXE, an ETF that tracks the Euro against the dollar. I only put 5% of my portfolio into this but it's helping to offset the declines in the US market. I'm also upping my international exposure a bit.
I've had foreign stocks since 1996 and precious metal bullion since 2004. Whether or not you anticipated the crisis, it has always been a good idea to diversify outside of the US stock market.
I'm doing more internationally, but at the same time the markets have been getting killed lately, so it's still a bit distressing. :)