UnThreaded | Threaded | Whole Thread (28) | Ignore Thread Prev | Next
Author: OrmontUS Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 465340  
Subject: Re: Can Washington improve GDP growth? Date: 11/16/2012 8:24 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
If you project based on Yoda's reflections, there is a possibility (especially in the near/medium future considering current and likely global events) that the US dollar will move higher (unfortunately, the US stock market would drift in the opposite direction). In this event, it is also likely that foreign emerging economies (and even Europe) will decrease even faster.

We would then have companies showing better value outside of the US at the same time that the stronger USD allows us to purchase even more bang for the buck.

While predicting the future is difficult, there are two components to this strategy. The first is to have enough dry powder that you don't get mauled too badly as the USD rises (and the equity market drops) and can redeploy enough at a later time to make a long term difference when things settle down again. The second is a willingness to deploy when the time is right, rather than act like a deer in the headlights.

With recent selling sprees, I am currently about 11% of assets in equities. If I've guessed wrong, I may miss a bit of opportunity (and can always buy them back). If everything goes into the crapper between now and the end of February, I can always buy "something" back, but it will probably be more heavily weighted towards foreign shares (either/both specific issues and mutual funds such as VWO).

No reason to panic, just an organized withdrawal for now.

Jeff
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (28) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement