What else can you do to counteract the weakening dollar?

[fanmail]

I am going to allocate a larger portion of my portfolio to a variety of foreign mutual funds. I may short the dollar/get long some other currency, not sure yet. I know I missed alot of action on that already. What else can we do to counter this negative effect on out money?

[tolbiny]

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I am going to allocate a larger portion of my portfolio to a variety of foreign mutual funds. I may short the dollar/get long some other currency, not sure yet. I know I missed alot of action on that already. What else can we do to counter this negative effect on out money?

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Look for individual foreign stocks that pay dividends, those dividends will be paid in the currency the company works under.

[Jimbo]

Purchased stocks of American based companies that have a great deal ofmultinational exposure. People buy a Big Mac in Euros and Mac converts them into cheap us $'s. Just an example, not necessarily the best choice.

Jimbo

[soko]

[ QUOTE ]
Purchased stocks of American based companies that have a great deal ofmultinational exposure. People buy a Big Mac in Euros and Mac converts them into cheap us $'s. Just an example, not necessarily the best choice.

Jimbo

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EruoMac, mmmmmmmmmmmmmm.....

[iversonian]

Just hold your wealth in real assets, not a fiat currency that's tanking (if that's what's you predict will happen). This includes US stocks as well. Check their balance sheets. Avoid the ones with comparatively large cash and receivables accounts and you already have there a pretty good dollar neutral investment. Even better are the ones whose revenues are mostly denominated in another currency.

[adios]

Honestly I like Jimbo's idea mucho better than currency ETFs but you could do currency ETFs as a way.

Currency ETFs