Investing with a Revalued American Dollar

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coldman
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Investing with a Revalued American Dollar

Post by coldman » Fri Jan 10, 2014 8:42 am

As I have been talking with people, many conversations have the same theme of the American dollar is going to decline in the near future when it is revalued. Is there a way to invest and protect against some of the impact this will have on a person’s portfolio? I am not interested in buy gold or silver. Please share your thoughts.

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FNK
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Re: Investing with a Revalued American Dollar

Post by FNK » Fri Jan 10, 2014 8:58 am

Revalued by who with respect to what?

If you are concerned that inflation will pick up, you want to own inflation-resistant assets, such as stocks, TIPS and real estate.

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bottlecap
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Re: Investing with a Revalued American Dollar

Post by bottlecap » Fri Jan 10, 2014 9:07 am

I've never heard of the dollar being "revalued." Currency values fluctuate all the time, in real time.

JT

bberris
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Re: Investing with a Revalued American Dollar

Post by bberris » Fri Jan 10, 2014 9:11 am

The dollar floats freely against other currencies. It is continuously revalued by the market. You should understand that you are not referring to a single event. If you hold a firm opinion about the future value of the dollar there are lots of ways to place a bet, just as there are lots of ways to shoot dice.

jebmke
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Re: Investing with a Revalued American Dollar

Post by jebmke » Fri Jan 10, 2014 9:15 am

bottlecap wrote:I've never heard of the dollar being "revalued." Currency values fluctuate all the time, in real time.

JT
Actually, for a floating currency, the term "revalue" normally refers to a trend of appreciation of the currency vs. other currencies. Devaluation refers to a declining trend.
When you discover that you are riding a dead horse, the best strategy is to dismount.

solonseneca
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Re: Investing with a Revalued American Dollar

Post by solonseneca » Fri Jan 10, 2014 9:21 am

I heard the same thing from an AM talk radio show host and he advises that you to buy gold from an outfit that gives you only 50 cents on the dollar as well recommends using sheep's bladders to predict earthquakes.

If there is one thing that is certain, super intelligent monkeys will one day rule the earth and they will use bananas as currency. That's why I'm buying bunches of them now.

Best of luck.

Johm221122
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Re: Investing with a Revalued American Dollar

Post by Johm221122 » Fri Jan 10, 2014 9:28 am

Turn off the noise, it's just doom and gloom talk
John

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galeno
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Re: Investing with a Revalued American Dollar

Post by galeno » Fri Jan 10, 2014 9:45 am

We're more concerned with Inflation risk vs volatility risk. That's why we have 60% in equities as retired 56 year olds. We also base our equity allocation on the FTSE World Index. TIPS and REITS are too expensive right now but we'd like 10% of each in our port at some time in the future.

That said, global deflation is still a bigger threat vs inflation.
AA = 40/55/5. Expected CAGR = 3.8%. GSD (5y) = 6.2%. USD inflation (10 y) = 1.8%. AWR = 4.0%. TER = 0.4%. Port Yield = 2.82%. Term = 33 yr. FI Duration = 6.0 yr. Portfolio survival probability = 95%.

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TheTimeLord
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Re: Investing with a Revalued American Dollar

Post by TheTimeLord » Fri Jan 10, 2014 9:55 am

coldman wrote:As I have been talking with people, many conversations have the same theme of the American dollar is going to decline in the near future when it is revalued. Is there a way to invest and protect against some of the impact this will have on a person’s portfolio? I am not interested in buy gold or silver. Please share your thoughts.
As I understand it currceny risk is the reason for investing in International indexes. But considering what is going on with the U.S. and world Central Banks and economies I would challenge the people you are talking to.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]

allsop
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Re: Investing with a Revalued American Dollar

Post by allsop » Fri Jan 10, 2014 10:01 am

coldman wrote:As I have been talking with people, many conversations have the same theme of the American dollar is going to decline in the near future when it is revalued. Is there a way to invest and protect against some of the impact this will have on a person’s portfolio? I am not interested in buy gold or silver. Please share your thoughts.
I think that Nisiprius explains the issue very nicely with facts and graphs:

"I think a lot of people have been looking at the dollar's fluctuation through ideology-colored glasses...". Just look at the graphs.

Besides, a weaker USD means that USA will be more competitive and more manufacturing jobs returning. [OT comment removed by admin LadyGeek]

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Epsilon Delta
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Re: Investing with a Revalued American Dollar

Post by Epsilon Delta » Fri Jan 10, 2014 10:21 am

solonseneca wrote:If there is one thing that is certain, super intelligent monkeys will one day rule the earth and they will use bananas as currency. That's why I'm buying bunches of them now.
Get your bananas now before Fusarium oxysporum f. sp. cubense causes massive deflation.

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cheese_breath
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Re: Investing with a Revalued American Dollar

Post by cheese_breath » Fri Jan 10, 2014 10:52 am

allsop wrote:Besides, a weaker USD means that USA will be more competitive and more manufacturing jobs returning. [OT comment removed by admin LadyGeek]
I thought political statements weren't allowed.
The surest way to know the future is when it becomes the past.

jebmke
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Re: Investing with a Revalued American Dollar

Post by jebmke » Fri Jan 10, 2014 10:59 am

cheese_breath wrote:
allsop wrote:[OT comment removed by admin LadyGeek]
I thought political statements weren't allowed.
Maybe referring to golfers?
When you discover that you are riding a dead horse, the best strategy is to dismount.

allsop
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Re: Investing with a Revalued American Dollar

Post by allsop » Fri Jan 10, 2014 11:05 am

cheese_breath wrote:
allsop wrote:[OT comment removed by admin LadyGeek]
I thought political statements weren't allowed.
You "forgot" to quote my complete post, for some reason. That said, who are the ones talking about "debasing" the USD along with "suggestions" for future and current investments?

I think that Nisi is spot on in his analysis, don't you think?

Edit: Added "along" for clarity.

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cheese_breath
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Re: Investing with a Revalued American Dollar

Post by cheese_breath » Fri Jan 10, 2014 12:15 pm

allsop wrote:
cheese_breath wrote:
allsop wrote:[OT comment removed by admin LadyGeek]
I thought political statements weren't allowed.
You "forgot" to quote my complete post, for some reason. That said, who are the ones talking about "debasing" the USD along with "suggestions" for future and current investments?

I think that Nisi is spot on in his analysis, don't you think?

Edit: Added "along" for clarity.
OK, here's your complete post. Whatever else you might have written, the part I quoted was still political.

allsop wrote:
coldman wrote:As I have been talking with people, many conversations have the same theme of the American dollar is going to decline in the near future when it is revalued. Is there a way to invest and protect against some of the impact this will have on a person’s portfolio? I am not interested in buy gold or silver. Please share your thoughts.
I think that Nisiprius explains the issue very nicely with facts and graphs:

"I think a lot of people have been looking at the dollar's fluctuation through ideology-colored glasses...". Just look at the graphs.

Besides, a weaker USD means that USA will be more competitive and more manufacturing jobs returning. [OT comment removed by admin LadyGeek]
The surest way to know the future is when it becomes the past.

allsop
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Re: Investing with a Revalued American Dollar

Post by allsop » Fri Jan 10, 2014 12:29 pm

^ Your reply did not add any clarity, I'm afraid to say, as you did not address my two questions.

leonard
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Re: Investing with a Revalued American Dollar

Post by leonard » Fri Jan 10, 2014 12:30 pm

exactly how is the dollar going to be "revalued".
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Kevin21
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Re: Investing with a Revalued American Dollar

Post by Kevin21 » Fri Jan 10, 2014 12:37 pm

leonard wrote:exactly how is the dollar going to be "revalued".
It already has been, we're all [(ripped off) --admin LadyGeek] :D

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cheese_breath
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Re: Investing with a Revalued American Dollar

Post by cheese_breath » Fri Jan 10, 2014 12:48 pm

allsop wrote:^ Your reply did not add any clarity, I'm afraid to say, as you did not address my two questions.
I guess we'll just have to wait until Lady Geek comes along and let her decide whether it's political or not.
The surest way to know the future is when it becomes the past.

placeholder
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Re: Investing with a Revalued American Dollar

Post by placeholder » Fri Jan 10, 2014 1:50 pm

solonseneca wrote:If there is one thing that is certain, super intelligent monkeys will one day rule the earth and they will use bananas as currency.
So . . . banana bread?

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LadyGeek
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Re: Investing with a Revalued American Dollar

Post by LadyGeek » Fri Jan 10, 2014 3:26 pm

cheese_breath wrote:
allsop wrote:^ Your reply did not add any clarity, I'm afraid to say, as you did not address my two questions.
I guess we'll just have to wait until Lady Geek comes along and let her decide whether it's political or not.
Let's do it this way:

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