Dollar slide accelerates

N

Nadi

Registered Users (C)
The dollar's slide against most of the world's currencies gained pace today as dealers worried over the outlook for the US economy.

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Gurus .... should we convert our saving into Euro / Sterling or something ...

Some experts are suggesting that the dollar might slide at much faster rate than ever before ...
 
Nadi said:
The dollar's slide against most of the world's currencies gained pace today as dealers worried over the outlook for the US economy.

-------------------------------------------------------------------------

Gurus .... should we convert our saving into Euro / Sterling or something ...

Some experts are suggesting that the dollar might slide at much faster rate than ever before ...
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i would have preferred to buy foreign government bonds.....in EURO or Australia.......but could not find a way to buy them without being local...

if anyone knows a way please suggest.

for the time being....i am trying to keep half of my savings in india....in my parents name........because in the past the rupee was tightly pegged to the dollar....but now they are trying to de-link (though i doubt it that china and india will ever delink their currency from the dollar completely since their exports are so much dependent on usa)
 
What I do is buy international stocks or mutual funds. Your 401k probably will have some kind of "global" funds available. And for individual stocks you can buy them in non-US companies (at least those that are listed on the NYSE or NASDAQ), taking care to check that most of their revenue isn't from the US.
 
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You can do it - we can help ;-)

techy2468 said:
i would have preferred to buy foreign government bonds.....in EURO or Australia.......but could not find a way to buy them without being local...

if anyone knows a way please suggest.

for the time being....i am trying to keep half of my savings in india....in my parents name........because in the past the rupee was tightly pegged to the dollar....but now they are trying to de-link (though i doubt it that china and india will ever delink their currency from the dollar completely since their exports are so much dependent on usa)
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--> I have used Fidelity to buy Australia Fund, but this was when I was in Europe. Don't know if you can do that directly from here, but there are lots of Mutual Funds that you can invest in that address international markets and you can see the constitution of a fund before investing. I use Vanguard in the US. YMMV - no guarantees anywhere - be careful and read up before you part with your money.
 
Nadi said:
The dollar's slide against most of the world's currencies gained pace today as dealers worried over the outlook for the US economy.

-------------------------------------------------------------------------

Gurus .... should we convert our saving into Euro / Sterling or something ...

Some experts are suggesting that the dollar might slide at much faster rate than ever before ...
Click to expand...



Buy Gold (bullion and coins preferably and then gold mining stocks, mutual funds, ETFs). Gold and equities tend to be negatively correlated (one rises, the other falls).
 
what about the tax consequences to them?
techy2468 said:
for the time being....i am trying to keep half of my savings in india....in my parents name........because in the past the rupee was tightly pegged to the dollar....but now they are trying to de-link
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reedandbamboo said:
Buy Gold (bullion and coins preferably and then gold mining stocks, mutual funds, ETFs). Gold and equities tend to be negatively correlated (one rises, the other falls).
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I like your idea of hedging dollar with gold...

even though it never appealed to me that gold is being used just as a backup against the dollar right now...(or any currency)

It never made sense to me to buy gold....it was like a imaginery wealth....(what if the prices fall all of a sudden....due to stability in us economy and dollar)

but in uncertain times....its always better to hedge your savings/investments.

even though i am still interested in buying foreign government bonds....since that is practically zero risk........and u will earn a interest on it.....and in case dollar falls.....u will earn a good appreciation...
 
techy2468,
Instead of hedging your Indian citizenship with an american c and then hedging that with an australian c and hedging your money with gold; if you just worked on what you do and kept away from this forum you may find some peace....:p :p


techy2468 said:
I like your idea of hedging dollar with gold...

even though it never appealed to me that gold is being used just as a backup against the dollar right now...(or any currency)

It never made sense to me to buy gold....it was like a imaginery wealth....(what if the prices fall all of a sudden....due to stability in us economy and dollar)

but in uncertain times....its always better to hedge your savings/investments.

even though i am still interested in buying foreign government bonds....since that is practically zero risk........and u will earn a interest on it.....and in case dollar falls.....u will earn a good appreciation...
Click to expand...
 
nyc8300 said:
techy2468,
Instead of hedging your Indian citizenship with an american c and then hedging that with an australian c and hedging your money with gold; if you just worked on what you do and kept away from this forum you may find some peace....:p :p
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humour aside.....i did try that seriously dude......but found not much value for my time....:rolleyes: :confused:

I am unable to find a better job/deal in the current location in terms of pay/quality of work. (over here employers have reduced hiring senior people....they just promote the juniors and hire juniors for much less...i would do the same...smart)

I may have to move to a bigger city/area like Silicon Valley or NJ/Ny area due to family prospectus.........but found that cost of living/average pay is not much better than this small town of alabama.

on top of that i may have to spend more time in commuting (right now 45 mins daily.........big cities...it will be atleat 1.5 hour/day)
not only that....i will have to be prepared to work atleast 50 hrs/week so that i dont look bad compared to my colleagues...


as you can see i am a pessimist....i focus on the negative......so that i can find work-around.........but i still have some hope that being a intelligent and sincere person....i may not have to do all that even if i move to a bigger city...


once i get green card....i too have few business plans to implement......just like most of us do...

right now we are tied to the current employer/sponsor....not able to move.....pretty much the same story as everyone else....

BTW i also tried to study the stock market......i still feel that its mostly a gamble.....since people operate based on sentiment more and less on fundamentals out there...
 
Wow! the current exchange rate for USD is Rs. 41.38 (Indian Rupees) as per ICICI Bank (https://m2inet.icicibank.co.in/m2iNet/calculateCharges.misc).

Boy, am I so glad that I invested in real estate in India last year. I had been thinking about it for a long time but couldn't decide because everyone said that property prices in India were over heated. Now, not only have the property prices appreciated but also I've saved thousands of dollars because of the change in currecy values. Yes, you heard me right, "thousands of dollars", considering the exchange rate last year was over 44 rupees.

So my advice is, invest in India while you can. Plenty of growth potential in that economy.
 
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MA_Labor said:
Wow! the current exchange rate for USD is Rs. 41.38 (Indian Rupees) as per ICICI Bank (https://m2inet.icicibank.co.in/m2iNet/calculateCharges.misc).

Boy, am I so glad that I invested in real estate in India last year. I had been thinking about it for a long time but couldn't decide because everyone said that property prices in India were over heated. Now, not only have the property prices appreciated but also I've saved thousands of dollars because of the change in currecy values. Yes, you heard me right, "thousands of dollars", considering the exchange rate last year was over 44 rupees.

So my advice is, invest in India while you can. Plenty of growth potential in that economy.
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imagine how much money i saved.........because i had sent money to india when the rate was close to 48.

i did invest in a property (not investment though, primary residence for my parents)....i am still waiting to see the double every year effect thats supposed to happen in bangalore... (if i am not wrong property market is going to stagnate except for few locations.....which is again a gamble as of now.......in other words they have reached a saturation point compared to average income)

how things can become:

http://en.wikipedia.org/wiki/Tulip_mania


for example I wont be surprise to see a three bedroom apartment in bangalore.....currently being at say RS. 4 million (10 times avg income) go to as much as 20 or 30 times avg income.....due to the speculation...

let me be bit more doomsayer...

US economy is almost balancing on the edge...it can go either way...
if that happens most stock markets will go down a bit..

indian stock market is so volatile.....that i wont be surprised if they start losing their appetite for the speculation and throw all the fundamentals to wind...(say 5% loss due to US effect.....and thats it...it will be free for all)

and if that happens i wont be surprised if they lose around 30%........and u know which market will follow after that...

but remember this is just a negative theory....but the probability right now is 60% that this will happen...(we are more tipped towards a economy downturn than a growth right now)
 
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I don't know why people get excited / nervous by the short term effects of the economy. Look at the BIG Picture my friend.

Well, if you are so concerned about dooms day then why don't you liquidate your equity holdings into cash ... or even better .... into precious metal and go hiding in a bunker :) .

So how did the dot com crash impact your portfolio in the long run? Or do you still regret that you didn't get a chance to dump your stocks during the summer of 2000? What about the real estate bubble? How many of you sold your homes in the last couple of years anticipating an impending market crash? Capital economies tend to go through phases of adjustments and corrections on time to time, but in the longer run growth is always upwards. It is human tendency to start thinking negatively after a long positive run, it's an instinct that keeps us on our toes for worse case scenarios. But too much negative thinking creates fear and apprehension. And it is those who are upbeat and take risks, are more likely to see bigger returns.
 
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MA_Labor said:
I don't know why people get excited / nervous by the short term effects of the economy. Look at the BIG Picture my friend.

Well, if you are so concerned about dooms day then why don't you liquidate your equity holdings into cash ... or even better .... into precious metal and go hiding in a bunker :) .

So how did the dot com crash impact your portfolio in the long run? Or do you still regret that you didn't get a chance to dump your stocks during the summer of 2000? What about the real estate bubble? How many of you sold your homes in the last couple of years anticipating an impending market crash? Capital economies tend to go through phases of adjustments and corrections on time to time, but in the longer run growth is always upwards. It is human tendency to start thinking negatively after a long positive run, it's an instinct that keeps us on our toes for worse case scenarios. But too much negative thinking creates fear and apprehension. And it is those who are upbeat and take risks, are more likely to see bigger returns.
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u mean there was nothing abnormal about the dot com bubble or tulip mania........there is supposed to be growth after those busts....i am still waiting for nasdaq to reclaim its glory..


dude....the reason why we are discussing this is, because what if the dollar gets busted.......lets say it goes all the way to RS 30, and imagine we dont get green card and we have to go back to india............our $100k savings gets reduced to almost nothing...
 
The reason we are discussing this is because at this moment other economies seem to be more lucrative than the US economy. Not because dollar is going to hit Rs.30 anytime soon. In my personal opinion US markets will continue their upward trend in 2007. But Indian economy will have a higher growth rate because it's a growing economy. The growth will stabilize once the economy matures.
 
MA_Labor said:
The reason we are discussing this is because at this moment other economies seem to be more lucrative than the US economy. Not because dollar is going to hit Rs.30 anytime soon. In my personal opinion US markets will continue their upward trend in 2007. But Indian economy will have a higher growth rate because it's a growing economy. The growth will stabilize once the economy matures.
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can you please list the reasons you think the dollar may not slide down??

here are my reasons:

1. Dollar losing value....because US literally prints money whenever it wants more (to finance the economy)....in other words capital has no value....if it can be created anytime...

2. other countries were so far financing USA fiat money.....by supplying goods and investing in usa.......they may not continue to do so

3. USA debt servicing has increased to a huge extent......one easy way out is to let the dollar depreciate.......imports will become expensive but at the same time exports will become cheap helping domestic manufacturing...

4. if the economy slows down....the FED will reduce interest rate (leading to further decline of dollar since due to reduced returns people will invest in other currency instead)

i am not from a finance background...hence my arguments are not perfect.......UnitedNation may be able to explain better (even though for some reason he refrains from discussing economy/currency on these boards :)
 
techy2468 said:
i am not from a finance background...hence my arguments are not perfect.......
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Hey, I'm not looking to pick a fight here. I am just out voicing my opinion. I don't have counter arguments to your statements above but somehow I don't buy into the argument that US prints money whenever it wants. I too don't have a finance background so maybe we need to pick up a Macroeconomics book or something.
 
techy2468,
pls, pls stop these kind of vague discussions and try and fill your time with something useful....I guess you are in Alabama! Explore the south and get to know about american history rather than wasting your time and everybody else's. We know you have tried to do useful things but please try harder....


techy2468 said:
can you please list the reasons you think the dollar may not slide down??

here are my reasons:

1. Dollar losing value....because US literally prints money whenever it wants more (to finance the economy)....in other words capital has no value....if it can be created anytime...

2. other countries were so far financing USA fiat money.....by supplying goods and investing in usa.......they may not continue to do so

3. USA debt servicing has increased to a huge extent......one easy way out is to let the dollar depreciate.......imports will become expensive but at the same time exports will become cheap helping domestic manufacturing...

4. if the economy slows down....the FED will reduce interest rate (leading to further decline of dollar since due to reduced returns people will invest in other currency instead)

i am not from a finance background...hence my arguments are not perfect.......UnitedNation may be able to explain better (even though for some reason he refrains from discussing economy/currency on these boards :)
Click to expand...
 
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