Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Protect Yourself from the Falling Dollar
Old 07-05-2006, 10:03 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Historic Florida
Posts: 1,642
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
__________________

__________________
"Arguing with an Engineer is like rolling in the mud with a pig. Just remember that the pig likes it."
ShokWaveRider is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Protect Yourself from the Falling Dollar
Old 07-05-2006, 10:26 AM   #2
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 403
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.
__________________

__________________
macdaddy is offline   Reply With Quote
Re: Protect Yourself from the Falling Dollar
Old 07-05-2006, 10:37 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
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.
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.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Protect Yourself from the Falling Dollar
Old 07-05-2006, 11:11 AM   #4
Recycles dryer sheets
 
Join Date: Jul 2006
Posts: 227
Re: Protect Yourself from the Falling Dollar

I just recently started hedging against the dollar buying investments and trusts using Euro, francís 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, canít remember the length though?
__________________
"Those who think it cannot be done, need to stay out of the way of those of us doing it."
PsyopRanger is offline   Reply With Quote
Re: Protect Yourself from the Falling Dollar
Old 07-05-2006, 11:23 AM   #5
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 403
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).
__________________
macdaddy is offline   Reply With Quote
Re: Protect Yourself from the Falling Dollar
Old 07-05-2006, 11:32 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
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.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Protect Yourself from the Falling Dollar
Old 07-05-2006, 11:41 AM   #7
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 403
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.
__________________
macdaddy is offline   Reply With Quote
Re: Protect Yourself from the Falling Dollar
Old 07-05-2006, 11:45 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
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.
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.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Protect Yourself from the Falling Dollar
Old 07-05-2006, 12:02 PM   #9
Recycles dryer sheets
 
Join Date: Jul 2006
Posts: 227
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).
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?

__________________

__________________
"Those who think it cannot be done, need to stay out of the way of those of us doing it."
PsyopRanger is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Declining Dollar Erodes Personal Savings camberiu FIRE and Money 45 05-17-2006 08:05 AM
Calculating pension dollar figure... FedOut@56 FIRE and Money 13 02-09-2006 03:17 PM
China dollar peg removed. What now? Olav23 FIRE and Money 28 07-26-2005 01:42 PM
The dollar is falling and it can't get up. riskadverse FIRE and Money 4 05-27-2005 12:06 PM
How does the Low US Dollar Affect Your Retirement? ShokWaveRider FIRE and Money 9 08-15-2004 07:24 AM

 

 
All times are GMT -6. The time now is 07:50 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.