Comments on: Hedging Against the Declining Dollar http://toughmoneylove.com/2009/06/14/hedging-against-the-declining-dollar/ The Hard Truth about Money and Personal Finance Thu, 18 Mar 2010 03:15:17 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Curt http://toughmoneylove.com/2009/06/14/hedging-against-the-declining-dollar/comment-page-1/#comment-5347 Curt Mon, 10 Aug 2009 03:11:55 +0000 http://toughmoneylove.com/?p=3946#comment-5347 @Kitty - Sure, a few US companies will benefit from a falling dollar, but more of them will not. 72% of the US economy is consumer driven. The weakening dollar will hurt the service sector of the economy, which will lead to higher taxes on the few companies that are making money - which will reduce their profits even if the are coming from exports. As a long term investor, you are better off investing outside the US and out of the dollar. The weakening dollar will also reduce the value of your US stocks. @Kitty – Sure, a few US companies will benefit from a falling dollar, but more of them will not. 72% of the US economy is consumer driven. The weakening dollar will hurt the service sector of the economy, which will lead to higher taxes on the few companies that are making money – which will reduce their profits even if the are coming from exports.

As a long term investor, you are better off investing outside the US and out of the dollar. The weakening dollar will also reduce the value of your US stocks.

]]> By: kitty http://toughmoneylove.com/2009/06/14/hedging-against-the-declining-dollar/comment-page-1/#comment-4742 kitty Mon, 15 Jun 2009 02:25:22 +0000 http://toughmoneylove.com/?p=3946#comment-4742 I am surprised he didn't mention US exporters. Many of the US companies, for example, get most of their profits from abroad - not just Europe but all over the world. Not only low dollar makes their products more attractive for other countries, but their profits look great when converted into dollar. I am surprised he didn’t mention US exporters. Many of the US companies, for example, get most of their profits from abroad – not just Europe but all over the world. Not only low dollar makes their products more attractive for other countries, but their profits look great when converted into dollar.

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