Quote:
Originally Posted by spence
How about that market today? How about that Dollar? 
-spence |
Well, I've been loudly bellyaching about the USD over at SOL for so long now, I can't remember when I started jumping up and down and yammering about it. Since I'm banned from the Tavern and the PG, I won't be yammering for a while there.
What's actionable?
1) Move to Europe.
Real wealth in this unbalanced environment will be measured by tangible resources. Not increasingly worthless dollars and financial vehicles (U.S. treasury and corporate bonds and most stocks) denominated in them, they should be avoided.
2) Buy gold and gold mining stocks ...
when spot gold prices correct to $750/oz. My picks:
GLD (commodity ETF) and
GDX (basket of gold mining stocks).
Gold is a bit overdone right now. Wait until it pulls back. Other than jewelry, avoid owning physical gold within U.S. territory. I predict it will be confiscated by the government. I $hit you not. You can buy physical gold (on the interblab) and have it held in a Swiss vault if you want. Everbank.com also has a gold-linked certificate of deposit (which appreciates with the price of gold and is FDIC-insured).
3) Buy commodities. We are in a commodities supercycle. The best way for the average joe to do this is to buy commodity ETF's (which trade like stocks) like
USO (crude oil) and
DBC (Deutsche Bank Commodity ETF).
4) If China continues its foreign currency reserve diversification, then it's time to buy foreign currency ETF's. Wait until the dollar retraces its most recent losses, however. The
dollar could temporarily strengthen as money flows back to the U.S. if U.S. investments are regarded as a safe haven and the emerging market premiums get deflated.