Strategies for weakening $US - Aussie Stock Forums

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  1. #1

    Default Strategies for weakening $US


    I'm about to head overseas, to a decent role paying $US.

    I'm concious the long term outlook for the $US is weakness, at least until the treasury purchase spree is over.

    What are some strategies I can use to protect the savings I will accumulate? Buy gold? (Weakening $US = higher gold price), Buy oil futures (weakening $US pushes up price too?)

    Of ocurse the above are based on demand staying the same (or increasing) from current levels and purely increasing on a weakening $US. Though it does look like the price of both will increase with demand aswell, especially oil as the world comes out of recession, which adds a little more "Security" to the hedge.

    I'd appreciate some opinions from the more knowledgeable ASF members (so, all of you )

  2. #2

    Default Re: Strategies for weakening $US

    3am bump..

  3. #3

    Default Re: Strategies for weakening $US

    Obviously, you will need your living expenses to use first.
    Then it depends on what you are doing in the long term. If you are going to live there, then you will need to look into buying property etc.

    If you are going to work there for less than 5 years and get out then I'd say the obvious most safest (as safe as you can go that is) is to put into a term deposit bank.

    Otherwise, yeah, I agree with you take the exchange rate as you get it.

    The US is flooded with cash, they are printing money hand over fist, diluting it's value. Also, given that China is on the sideline with their trillion US dollars, it's value will dive when they ever decide to open their vaults and let the cash run free. That can happen any time. I just heard today China say that the IMF should set up a global currency....obviously, China is sick and tired to the USA headaches it has and is eager to change to another currency to trade with. It will happen at some point...the USD will die then.

    In short get the currency exchange while you can get it. It will go up and down....but over the long term, it's dead.

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