December 8, 2004 09:57 AM
How To Profit On A Weak Dollar
Excerpt: Laidi and investment professionals say there are several ways even small investors can take advantage of the dollar's weakness. But beware: currency markets are volatile and only a small percentage of an individual investment portfolio -- probably less than 10 percent -- should be exposed to currency fluctuations, according to the experts.
A weak dollar can produce strong returns, even for individual investors.
The euro has jumped about 6 percent against the dollar this year, as the greenback hit a series of record lows versus that young currency. The dollar has also fallen against Japan's yen. That has increased the value of U.S. companies' overseas sales while driving up the cost of imports here.
Two prime factors driving the dollar's decline: the current account deficit, a broad measure of U.S. global trade and investment, and the federal budget deficit. Experts don't expect either to narrow significantly any time soon, so the dollar could very well keep falling.
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Assessing What Will Now Happen to Fannie Mae - Dec 17, 2004
Brokerages Battle for 'Active Traders' - Dec 14, 2004
Taxable And Tax-Exempt Not So Different? - Dec 11, 2004
The Dollar Dilemma - Dec 08, 2004
Fear Itself - Dec 08, 2004
Wall St. Turns To The Time Out As Punishment - Dec 08, 2004
Zhou Comments Boost Yuan Forwards - Dec 07, 2004
SEC: Hedge Fund Advisers Must Register - Dec 06, 2004
Should You Be Buying Gold? - Dec 06, 2004
Money Market Funds Reinflate Fees - Dec 06, 2004
The Tax Man May Take a Bite - Dec 05, 2004
China Pledges Stable Policies - Dec 05, 2004
The Insiders Are Selling. But Is That So Bad? - Dec 05, 2004
Fed President: Measured Hikes Ahead - Dec 03, 2004
Funds Take In $14 bln In October - Dec 02, 2004
Google CEO Proud Of Dutch Auction IPO - Dec 02, 2004
Dollar Struggles From New Lows - Dec 02, 2004
Why Consumers Hate Mergers - Dec 02, 2004
Nothing Ventured, Everything Gained - Dec 02, 2004
The Right (and Wrong) Way To Protect Yourself Against The Falling Dollar - Dec 01, 2004
Fidelity Tightens Trading Policy - Nov 30, 2004
A Lesson for Social Security: Many Mismanage Their 401(k)s - Nov 30, 2004
Chip Index To Get Makeover - Nov 30, 2004
Gold ETF Could Open Door To Commodities - Nov 29, 2004
Has Social Investing Lost Its Way? - Nov 28, 2004
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The Other Side of Vanguard - Nov 26, 2004
The School-Savings Plan With a 'Huh?' Name - Nov 26, 2004
In Tug-of-War on Stocks, Some Pull Away From the U.S. Market - Nov 24, 2004
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Day Trading Ads: Cutting Through the "Bull" - Nov 22, 2004
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Small Boost for I Bond; EE Looks Like A Better Deal - Nov 06, 2004
I Bond Should Hold Steady, But EE May Jump - Nov 03, 2004
Bottom Line at Fannie Mae: Looking Safe vs. Being Safe - Dec 17, 2004
Assessing What Will Now Happen to Fannie Mae - Dec 17, 2004
Brokerages Battle for 'Active Traders' - Dec 14, 2004
Taxable And Tax-Exempt Not So Different? - Dec 11, 2004
The Dollar Dilemma - Dec 08, 2004
Fear Itself - Dec 08, 2004
Wall St. Turns To The Time Out As Punishment - Dec 08, 2004
Zhou Comments Boost Yuan Forwards - Dec 07, 2004
SEC: Hedge Fund Advisers Must Register - Dec 06, 2004
Should You Be Buying Gold? - Dec 06, 2004
Money Market Funds Reinflate Fees - Dec 06, 2004
The Tax Man May Take a Bite - Dec 05, 2004
China Pledges Stable Policies - Dec 05, 2004
The Insiders Are Selling. But Is That So Bad? - Dec 05, 2004
Fed President: Measured Hikes Ahead - Dec 03, 2004
Funds Take In $14 bln In October - Dec 02, 2004
Google CEO Proud Of Dutch Auction IPO - Dec 02, 2004
Dollar Struggles From New Lows - Dec 02, 2004
Why Consumers Hate Mergers - Dec 02, 2004
Nothing Ventured, Everything Gained - Dec 02, 2004
The Right (and Wrong) Way To Protect Yourself Against The Falling Dollar - Dec 01, 2004
Fidelity Tightens Trading Policy - Nov 30, 2004
A Lesson for Social Security: Many Mismanage Their 401(k)s - Nov 30, 2004
Chip Index To Get Makeover - Nov 30, 2004
Gold ETF Could Open Door To Commodities - Nov 29, 2004
Has Social Investing Lost Its Way? - Nov 28, 2004
Study Links Personality Type to Investing - Nov 27, 2004
Advantages That VIPERs Bring to Exchange-Traded Funds - Nov 27, 2004
The Other Side of Vanguard - Nov 26, 2004
The School-Savings Plan With a 'Huh?' Name - Nov 26, 2004
In Tug-of-War on Stocks, Some Pull Away From the U.S. Market - Nov 24, 2004
Scary Bonds - Nov 22, 2004
Taxpayers With IRAs: FYI: The IRS Does Not Approve IRA Investments - Nov 22, 2004
Investing in Rare Coins - Nov 22, 2004
Day Trading Ads: Cutting Through the "Bull" - Nov 22, 2004
A Bond Strategy Once Thought Foolish Now Looks Smart - Nov 17, 2004
Small Boost for I Bond; EE Looks Like A Better Deal - Nov 06, 2004
I Bond Should Hold Steady, But EE May Jump - Nov 03, 2004
