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Investment Analysis Clubs / Macro Economic Trends and Risks


Subject:  Re: Portfolio Strategy in a Global Down Draft Date:  9/15/2008  8:38 PM
Author:  kentm401 Number:  252148 of 479878

I don't think you need to do that WTH for exactly the reasons you state.....tho, my way may be just as obtuse.....

If the Fed floods the banks with cheap money (essentially "printing money"), the value of the dollar can decline, eating into your nest egg.
I'm not knowledgeable enough about investing in foreign currencies to make a big swing in that direction and I have as little faith in the soundness of financial reporting

I prefer to hedge the currency risks by indirect investments in "dirt&grease" companies producing commodities, and direct investment in PM's [either the miners or the physical]. The goal for me being to hedge against my own currency via a commodity with a supply de