How to Protect Against Falling Dollar

The dollar has been steadily falling over the last year, but there are signs that the fall could become a free fall, creating havoc on the stock market. Investors are leaving the dollar as the currency of choice, for numerous different reasons including the threat of inflation. All we need to know is that it is happening and is likely to continue.

Instructions

1. 

   Transfer out of United States Treasury bonds and into foreign bonds. Interest rates have been increased around the world, making the foreign bonds an attractive option instead of the dollar. The reason is the return on any bond is much higher than the Treasury bonds.

2. 

   Go to a foreign stock market. A foreign stock market will protect the investor from a falling dollar and provide an avenue to continue making money in the stock market, just not the New York Stock Exchange.

3. 

   Stock pile up on what is known as large cap stocks or in other words large companies. The bigger the company the bigger the market and that means a world wide market. This will create diversity for any individual investor.

4. 

   Add gold and silver to the portfolio. It is a simple concept, precise metals hold a guaranteed value and in monetary crisis will provide protection.

Tips & Warnings

• Watch the triggers closely for a falling dollar such as the borrowing rating of the United States being lowered from triple A.

Resources

• Gold