Originated From AOL Coaches
Should I invest in foriegn money because of falling dollar? I think I'm being unpatriotic or betting againts my country if I do. But I see the dollar weakening and the pattern our economy is taking.
I wouldn't feel bad about it but perhaps the fact the dollar is low means it's exactly the time to buy dollars. That's what I would do if I had money to invest. It's a risk of course but there is no way to make money in foreign currency without a little risk.
If you want to invest in something and not damage your country invest in something that will not change it's value try real estate.
First off, I am going to assume you are an American (the dollar really gave it away).
You are a capitalist, that is what America was built on. Pour your money into any currency, stock, or futures purchase you want. If it is a good investment, your government will get it's cut off your income. That's the american way.
As for feeling bad...really? American good and services look relatively cheaper compared to other goods and to the same american goods and services a short while ago. That means more units sold for just a small dollar dip. America would actually make more money.
So don't feel bad, seize the opportunity.
Buying foreign money isn't investing --- it's speculating. Because of recent governmental action (spending billions of dollars we don't have, etc.) we can expect inflation in the future. therefore, it might be wise to invest in things that will rise with inflation. Real estate, stock in companies that hold real assets (timber, coal, oil, etc.) should do well. And definitely diversify, diversify, diversify.
Forex trading can be used for hedging but is more a play that can be profitable if you know what impacts currency exchange rates.
Other people asked questions on similar topics, check out the answers they received:
Other people asked questions on various topics, and are still waiting for answer. Would be great if you can take a sec and answer them