Hedging Strategies: The Falling U.S. Dollar

Around the time Bear Stearns collapsed I recall asking approximately this same question. At that time, in addition to precious metals, a strategy like purchasing Euros (or Canadian dollars or Swiss Francs?) might have seemed attractive, but so much has changed in the year + that has transpired since then.

Are currency plays still attractive to DU investors when it comes to hedging against the collapse in value of the Dollar?

Any ideas, or can you steer me towards an author/investor/strategist/finance blogger who has written (recently) about this topic?

Surely there is something obvious I'm not thinking of. Developing nations? They don't seem appealing or safe either? If there are safe hiding places, I'm not finding them.

If this is an issue that is on your mind as well, I would love to hear your thoughts on the potential devaluation of the dollar and what, if anything, you are doing to protect your portfolio.

Thanks fellow DUers.

:shrug:

Oil
Gold

Manufacturing:
CAT
MMM

Inflation:
TIPS
TBT

Sharks eat little fish and don't even notice ...

i have banked on the falling dollar and rising oil both.

you can use FXE, an exchange traded fund that mirrors the EURUSD pair. iow, when the euro gains vs. the dollar, FXE goes up.

or you can trade forex, or futures.

similarly, u can use USO for oil, or use futures.

it was a no brainer a few months ago.

NOW?

i'd be tightening my stops if long. but *i* would not establish a new long here.

the risk/reward is far from compelling now

imo, currency is actually much easier in many ways than stocks

Actually we were into it before January and have been following it on up with further investments all along.

the dollar collapses? Or do the Chinese own so much U.S. debt that an American collapse would be followed by a Chinese collapse? They, at least, have a strong manufacturing base so wouldn't their currency hold up better?

Thank you for these very fertile thoughts and ideas.

This is a thread I will print out in a day or so when everyone has had his or her say on this matter, which seems rather important.

Thank you, everyone who is participating!