IF the dollar falls tomorrow, where do you want your investments?

[TheSeeker03]

There is some talk about the petro dollar, and the possibility of oil being traded in euro. If that happens the dollar will plunge in value.

So what if the already shaky dollar plunges in value? where do you want your investments?

Obviously not in US, because it will be hit the hardest. Do you want it to be in foreign euro-asian markets? Do you want it to be in the markets at all?

I am not prepared to give up on market alltogether, my investments will be in international mutual funds. Afterall, some companies will be growing. In fact they will probably benefit from the turmoil of US companies and take over some of their marketshare. I am just trying to anticipate how big of a splash such an event will make.

It's not certain that this will happen, but I am definitely considering it into my equation. You should too.

[elus2]

[ QUOTE ]
Obviously not in US, because it will be hit the hardest.

[/ QUOTE ]

There are some industries in the States that will benefit from a falling dollar. Film production, tourism, some types of manufacturers (depends on how they acquire raw materials and if that is adversely affected by the declining currency) are just a few examples.

[MrBlue]

In gold bars underneath my bed next to my shotgun and a case of ammo.

[Nonononono]

[ QUOTE ]
There is some talk about the petro dollar, and the possibility of oil being traded in euro. If that happens the dollar will plunge in value.


[/ QUOTE ]
I'm not sure it's as bad as that. I haven't followed closely, but if the market already perceives this as a likely event, then the downside risk should be quite limited because it was expected to happen. And if it fails to happen, or becomes perceived as less likely, then the dollar could rally.

As I mentioned in another post, the apparent fact that everyone else is worried about the dollar makes me less likely to worry.

[Brainwalter]

[ QUOTE ]
In gold bars underneath my bed next to my shotgun and a case of ammo.

[/ QUOTE ]

[bingobazza]

http://www.financialsense.com/editor...2005/0227.html

[Mr. Now]

This contrary-opinion thesis can work well in most markets. But currencies are manufactured by governments.

The current pattern of money growth, interest rate increases and associated PR concering both is consistent with a deliberate, systematic and orderly dismantling of the US dollar.

If this is true, then the opportunity to profit now is large, because only a select few are alarmed. The inflationary mindset has not taken hold. Yet.

When everyone gets it, by definition the opportunity has expired.

[Baulucky]

Platinum is 20 times scarcer than gold, and has not ever been a confiscation target. It's not a central bank reserve asset either.

[Baulucky]

Not that I'm particularly pimping platinum at this point in time. It's just strategically better than gold, in my opinion. Most metals to go lower in price from here, I think.