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Protect Yourself from the Falling Dollar
07-05-2006, 09:03 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,666
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Protect Yourself from the Falling Dollar
I read this and thought it was worth sharing. I for one am always worried about the state of the greenback. As I travel between countries often and it seriously effects my cost of retirement.
http://money.cnn.com/2006/06/15/pf/d...0607/index.htm
SWR
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Re: Protect Yourself from the Falling Dollar
07-05-2006, 09:26 AM
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#2
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Recycles dryer sheets
Join Date: Feb 2006
Posts: 403
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Re: Protect Yourself from the Falling Dollar
I'm looking at the Bank of Montreal (BOM). I wanted some more banking exposure anyway and it seems to be correlated with the canadian dollar and at a low right now. So as the US dollar falls, BOM's assets, div yield and/or share price rise. If this is a mistake, somebody jump in and stop me.
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Re: Protect Yourself from the Falling Dollar
07-05-2006, 09:37 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Protect Yourself from the Falling Dollar
Quote:
Originally Posted by macdaddy
I'm looking at the Bank of Montreal (BOM).* I wanted some more banking exposure anyway and it seems to be correlated with the canadian dollar and at a low right now.* So as the US dollar falls, BOM's assets, div yield and/or share price rise.* If this is a mistake, somebody jump in and stop me.
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Prolly OK, but I guess I am happier with expousures I can actually hope to understand. There is no way I would possibly be able to nail down enough of the things that go on in a $27Bln USD market cap bank.
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Ezekiel 23:20
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Re: Protect Yourself from the Falling Dollar
07-05-2006, 10:11 AM
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#4
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Join Date: Jul 2006
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Re: Protect Yourself from the Falling Dollar
I just recently started hedging against the dollar buying investments and trusts using Euro, franc’s and the Canadian dollar. Buffet has been doing it for the past few years.
My bank in here in Italy offers a CD at 5% in Euro, can’t remember the length though?
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"Those who think it cannot be done, need to stay out of the way of those of us doing it."
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Re: Protect Yourself from the Falling Dollar
07-05-2006, 10:23 AM
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#5
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Recycles dryer sheets
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Re: Protect Yourself from the Falling Dollar
Do you need an account at a european bank to buy those? If so, is there a cheap way to do that. The portfolio I have to balance is already 80% fixed income so I need to put more money in stocks (hence BMO.. BOM=typo).
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Re: Protect Yourself from the Falling Dollar
07-05-2006, 10:32 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Re: Protect Yourself from the Falling Dollar
I just use GIM (closed end fund run by Templeton). Real short duration (like 2) basket of non-US fixed income, mostly investment grade.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Protect Yourself from the Falling Dollar
07-05-2006, 10:41 AM
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#7
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Recycles dryer sheets
Join Date: Feb 2006
Posts: 403
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Re: Protect Yourself from the Falling Dollar
GIM seems to be close to flat over the last 2 years, a period during which I thought the dollar fell in value relative to foreign currencies... are there other factors that impact its price? or am i missing something.
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Re: Protect Yourself from the Falling Dollar
07-05-2006, 10:45 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Protect Yourself from the Falling Dollar
Quote:
Originally Posted by macdaddy
GIM seems to be close to flat over the last 2 years, a period during which I thought the dollar fell in value relative to foreign currencies... are there other factors that impact its price?* or am i missing something.
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Check out the yield over the last couple of years. GIM pays monthly coupons based on the interest received on the bonds, plus a distribution of realized capital gains at the end of the year. Total return has been pretty attractive.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Protect Yourself from the Falling Dollar
07-05-2006, 11:02 AM
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#9
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Recycles dryer sheets
Join Date: Jul 2006
Posts: 227
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Re: Protect Yourself from the Falling Dollar
Quote:
Originally Posted by macdaddy
Do you need an account at a european bank to buy those? If so, is there a cheap way to do that. The portfolio I have to balance is already 80% fixed income so I need to put more money in stocks (hence BMO.. BOM=typo).
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Your account needs to have access to other exchanges (Toronto, Frankfurt) to access some of these investments.
Most brokerages and fund houses also have foreign offices and may be able to offer there investments in Euro, etc.
I have the Dow Jones Global Titans 50 SM EX in Euro as a hedge against the dollar.
There is also this company http://www.investoffshoredirect.com/Default/About_Us
But I am not sure of there credibility?
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"Those who think it cannot be done, need to stay out of the way of those of us doing it."
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