> Deanna wrote: > So, any suggestions for those of us with fewer assets, but still > interested in diversifying?
That's true, but I would point out that just holding your money in Euros *is* your investment. Had you put money into this account in 2000, it'd be worth 40% more today. That's a good rate of return! And it would've hit a new high last Friday. Also you can use your Euros account to invest in European stocks. For example you could buy EADS, the parent company of Airbus. If the stock goes up, and you sell, you make money plus you're still in Euros. Here's the scoop: European families save on average between 8 - 15%, Japanese families save about 30%, Americans save about 0.5%. The US borrows between $2-$4 billion per day to operate and is a net debtor. You can expect the dollar to continue to fall IMO. I'm not a CFA or any type of expert so I disclaim all of my advice by saying do your own research - I'm giving suggestions only and they could all be completely wrong. That having been said the strategy is based on this: 1.) You can expect the dollar to fall relative to the Euro and Yen and probably the Yuan. 2.) The US has a high probability of a continuing reckless fiscal policy with the election of Mr. Bush. 3.) History and trends suggest the US is in for a large fiscal "correction"; which probably means recession. If all of this comes to pass, to prepare, you want to: 1.) lock in interest rates for your house or buy a house and lock in. 2.) Diversify cash into Euros or Yen. 3.) Get ready to buy US stocks if the correction hits - they'll be cheap especially if you're repatriating Euros. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Special thanks to the CF Community Suite Gold Sponsor - CFHosting.net http://www.cfhosting.net Message: http://www.houseoffusion.com/lists.cfm/link=i:5:134600 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
