The dollar has been getting a lot of press lately. It’s been dropping on the market with some speculation that it has more ways to go. Despite common belief, the dollar itself holds no value. It’s a product traded on the market. In theory, if all the major countries dumped the dollar (mainly China), its value would be nothing. Additionally, if the feds keep printing more money, it will also lose value. Check out an article on Mint for more information on the dollar and its little worth. Now that the dollar is dropping, all this speculation is playing out in the market. The Dow has reached its highest peak this year. However, the national GDP is only inching forward slowly. What is one to do with all this contrasting info?
Our solution is to play where it pays: assets. Take your dollars and switch them over to assets of national and international value. Therefore, you get the controversial tender out of your hands. You exchange them for an asset that keeps pace with inflation and speaks a global language. This results in you being less vulnerable to the markets up and down swings, ready for whatever happens.
What types of assets to consider? Precious metals are definitely popular for the moment, and they’re a secure investment. Gold speaks for itself. Some investors are switching over their dollars to stronger currencies, like the Euro and the British Pound, since the ratios remain high. There’s always commodities like oil, corn, copper, etc. Strong stocks with paying dividends are another option. Real estate at a reasonable price is another option to consider since prices have reset after the recent bubble burst. The key is to buy assets of value at a good price.
Once you’ve safely stowed away your liquidity in assets, you can be at ease with the fate of the dollar, regardless of what happens.
Enjoyed this article?