usd depreciating

Discussion in 'Economics' started by clarodina, Aug 11, 2012.

  1. guys how you guys protect your usd capital with the usd depreciating?
     
  2. Bob111

    Bob111

    i didn't see any depreciation -


    http://finance.yahoo.com/echarts?s=...n;ohlcvalues=0;logscale=off;source=undefined;

    but..you can use IB and convert your USD into basket of currencies. it not going to affect your BP , but you will be exposed to a currency risk. what if you hold euro and it's go down to a toilet and dollar rise?(happens as we speak)
    i tried that in paper account-didn't like it at all. holding bunch of weighted pairs against for example 50% of holdings in USD.

    i would not bet on USD depreciation aggressively. it's still reserved currency and boys in DC are far more creative than gvt's around the world. mean-if dollar is going down the toilet the rest of the world will follow..and there is will be many countries before US. if euro goes kaput-whole entire world will run into US dollar. not because it great solid currency,but because money have to go some place. just an opinion
     
  3. I agree, best I have is a rule of thumb

    DX 83 buy gold
    DX 78 sell gold buy dollars
     
  4. some traders whose home currency is not usd and usd is depreciating against their currency
    any other ways to deal with the currency risk?
    how to judge which currency is apreciating more in long term?
    do you move your profit to other currency?
     
  5. Certificate of deposit will give you interest as you sit on cash -more than the depreciating dollar
     
  6. piezoe

    piezoe

    maybe not at present.
     
  7. Bob111

    Bob111

    ---how to judge which currency is apreciating more in long term?--

    you can be a very rich person,if you know that :p
     
  8. clacy

    clacy

    40% Intermediate Treasuries (IEF)
    40% Short Term Treasuries (SHY)
    10% Small Cap Value Stocks (IJS)
    10% Gold (GLD)

    That will keep you hedged very well for both inflation and deflation with low volatility, yet a positive real return
     
  9. a possible positive real return.

    no guarantee all that will beat just sitting in USD in the money market

    but I will agree, with less risk (due to diversification) Money in the bank is 100% concentrated in USD
     
  10. Bob111

    Bob111

    get this trough your head...there is no guarantee in this business..
    you need guarantee? buy CD at bank. or US treasuries..at least they guarantee that you will have your money back...guarantee..
     
    #10     Aug 13, 2012