OK, so how do you position yourself for this one if you believe it is true:
The demise of the dollar - Business News, Business - The Independent
The demise of the dollar - Business News, Business - The Independent
It's pretty fashionable to bash the dollar, but it looks to me like many other foreign currencies are in even worse shape than the dollar.I have been thinking about adding more to International Stock, after hearing this on the morning news, it seems like it's another reason to do so.
Don't forget most of the big companies get large portions of their incomeI have been thinking about adding more to International Stock, after hearing this on the morning news, it seems like it's another reason to do so.
-CC
This does seem to be the issue du jour that the press is all over these days. It's gotten into the "mainstream". I heard there was another Santelli rant today.It's pretty fashionable to bash the dollar, but it looks to me like many other foreign currencies are in even worse shape than the dollar.
My $15K recent grad portfolio is divided like this:
40% gold (3/4 bullion bars and 1/4 bullion coins)
25% silver (3/5 bullion coins, 1/5 bullion bars and 1/5 junk silver bullion)
20% cash divided evenly between a high-yield savings account and an HSA.
15% Federated Prudent Global Income Fund (symbol: PSAFX)
My $15K recent grad portfolio is divided like this:
40% gold (3/4 bullion bars and 1/4 bullion coins)
25% silver (3/5 bullion coins, 1/5 bullion bars and 1/5 junk silver bullion)
20% cash divided evenly between a high-yield savings account and an HSA.
15% Federated Prudent Global Income Fund (symbol: PSAFX)
I got into PSAFX a long while back before it became a loaded fund and without paying a commission charge. (It used to be a Schwab One select fund). My initial gold buying price was $700 and my initial silver-buying price was $9, so those percentages are only disproportionate due to price appreciation in the metals.
Not counted in my portfolio is my large gold and silver jewelry collection, my rare comic books, and various items I have around the house that could easily be converted to large sums of cash if need be.
I recommend that before you even consider doing this, that you first take care of any variable rate debt that you have and have at least 3 months food supply on-hand.
One may notice that 20% cash means I have only about $3K sitting in the bank. That's fine, because I don't pay rent and live at home for now. I plan to increase that amount over the next two years as I prepare to move out. My goal is to have $10K cash saved and the rest invested. I plan to have my portfolio doubled to $30K by next year.
...121 more Mondays and then I am FIRE'd... ....
What's your allocation to tinfoil? Might come in handy to keep the aliens from affeting you from mind control rays.
Seriously, someone starting out in life does not need to have an extreme portfolio like this. Build up some cash and diversify more broadly and you will be a lot better off over time.
I think the USD sell-off has gone too far. Tempted to short some Euros and JPY.
I'm still pessimistic about the dolllar long-term, but I still monitor the short-term trends. To-date I haven't sold off any of my positions and have been better off for it. I breezed through October 2008 without worrying the slightest bit.
I tend to be rather unconventional in my investment approach. I was one of the people who threw $1,000 at XM Sirius stock when it dipped down to $0.05/share. A very risky bet, yes, but it was definitely worth the reward.
Perhaps even more extreme is the fact that I'm foregoing the buying of a house entirely. I'm instead going to take $16K and build myself a tiny house like one of these: Tumbleweed Lusby
The 30% of yearly earnings that would have otherwise went to rent or a mortgage will be invested and set aside for early retirement.
I guess you could say that I'm definite example of early retirement extreme, from a somewhat unconventional lens.
Well, hell, I only have another 750 or so myself. 'Scuse me while I go drown my sorrows...
I have 2 more Mondays....
My understanding is that all Vanguard international equity funds are unhedged.I've got a question for you seasoned investors out there.In the long term it's certainly possible that the dollar will continue to decline.I think my Vanguard foreign equity funds are currency hedged so if the dollar declines I don't get a currency boost.How about etfs like EPP or other funds.What's a good place to invest in equities that have currency exposure
Venezuelan Beaver Cheese is a great diversifier ...Build up some cash and diversify more broadly and you will be a lot better off over time.
OK, so how do you position yourself for this one if you believe it is true
A portfolio evenly split 50/50 between US and international investments?
That's been my approach as well.