How can one profit from Diving Dollar ?
Best Answer
825 points
Dragonsbane answered 2 years ago …
Chaos is quite correct, though I'll just add my own two cents. Forex is the most direct method, though longer term, though you could consider buying the Chinese Yuan vs. USD instead of the Euro. The volatility is much lower, but on a valuation basis the yuan is much cheaper. China will also have to revalue the yuan to combat inflation (given enough time they will even let it float). You could also buy gold, it has a highly negatively correaltion to the USD. In addition to foreign economies, you could also buy multinational American companies that derive a good chunk of their revenues from overseas (ie. Coke, Proctor and Gamble, etc.). As the USD falls, their international revenue streams will appreciate in value, increasing the overall revenue that they report in USD.
Read more from Dragonsbane great answerAnswers
2183 points
ChaosNantuko answered 2 years ago …
The most direct way is to trade forex. Buy the euro, short the dollar. Forex gives you significant leverage, so if the dollar falls, your bound to make money there. Investing in non-dollar dominated assets will give you a form of profit if the dollar drops, and you convert back to dollars later. If your sticking to equities, my suggestion would be to buy ETFs focusing on foreign economies. Bric (Brazil, Russia, India, China) ETFs are looking like a good idea, although there is substantial political risk when investing there.
Read more from ChaosNantuko flag as abuse great answer
