How can we protect ourselves from a falling dollar?

[screembloodymurder]

The Canadian banks won't let me open an account. Short of going to Canada with money and exchanging currency what can someone do? I have some FXE, FXC, FXY, but I no longer trust the markets or our government. I want real assets that I can access on demand when the shit hits the fan. I think the dollar is going to collapse.

[whistle]

1. If you have a RBC Centra Bank available to you they are owned

...by Royal Bank of Canada (RBC) and can set all that up for you by opening a U.S. account up with them. Check them out:

http://www.rbcbankusa.com/anb/pdfs/Brochures/RBC_003A_PERSONAL_M2_web%5B1%5D.pdf

[screembloodymurder]

14. Thanks, I'll look into it on Monday.

I'm in a small town, but maybe I'll take a trip.

[Warren Stupidity]

2. Run quickly when out in the open. Hide in doorways. nt.

[HereSince1628]

7. LOL What is the terminal velocity of a falling dollar?

I suppose it depends if it's edging its way down or if it's coming down its front or back.

[Warren Stupidity]

8. 100 cents per second, at the limit.

[HereSince1628]

9. Yes, and a dollar can't fall below 0 so anywhere below ground

should be safe, eh?

[screembloodymurder]

13. Go ahead and make jokes.

I just watched a stock I own drop 38% after hours on a Friday afternoon. Why? There was no explanation from the SEC. The company issued a statement saying there was no change in their financial status, but someone sold millions of shares (twice the avg. daily volume) after hours at a huge loss. Why? And what buyer just happened to be staying late on Friday with a few extra million burning a hole in his pocket? This was a huge, prearranged sale after hours at 38% below the closing price. WTF is going on and how can anyone trust a market with this kind of manipulation occurring?

A trader on CNBC said, "I came to work Monday ready for a fist fight and got kicked in the privates." Someone changed the rules and there is no referee.

[Warren Stupidity]

17. You just changed the subject: dollars vs stocks

there is only a loose connection between stock prices and currency value.

If you cannot afford to lose substantial value in your stock holdings over the short term: a) you probably should not be invested in stocks but should instead have all of your assets in money market funds or bonds, and b) if you do insist on having stock investments you should certainly not be holding individual stocks but should instead have your money parked in one of the index funds.

That said: don't panic. Ride it out. This was the small point behind my joke. You really cannot do anything about a panic at the depth of the panic. The time to do things was long before the panic started, and what to do was to keep about 85% of your assets in safe (relatively safe) diversified investments with the remaining 15% in gambles you were willing to lose. When the shit hits the fan, you should hit the floor and wait for the shit to fly by. When the panic is over, if you haven't lost everything, that is the time to consider re-adjustments.

[screembloodymurder]

18. If I can't trust our markets, I can't trust the dollar.

I don't see any contradiction and I think foreign investors will see it the same way. It's a matter of who can you trust.

[HereSince1628]

3. Well, real assets, that's something that has value or worth

and if you haven't noticed this whole crisis was brought about by changing value and changing worth of REAL assets.

Could I interest you in buying a bridge to Wasilla? Up and coming place ya know... You wouldn't have a crumby bridge to no where.

I'm sure we can work out a deal that would be quite good for one of us.

[tularetom]

4. Stand in a doorway

I think they did that with a penny on Mythbusters but a dollar - ooh, that's gotta hurt.

Seriously there are many online outlets for trading in foreign currencies, or just go down to your local coin dealer and buy some gold.

I sold my Washington Mutual shares several months back when they were worth ten times what they are now and bought gold American Eagles.

[Vincardog]

5. store your value in commodities (gold, silver, copper, platinum)

[Aqaba]

6. Swiss francs!

[screembloodymurder]

15. Thanks, I'm looking into getting some.

I've lost faith in the FX's because I no longer feel the trading mechanisms are safe. Do you know if Forex is insured?

[flamingdem]

24. Is this suggestion for the coins or an ETF or another instrument?

How does one go about getting gold coin francs?

[Duppers]

26. This is a question I just asked in a new thread

and am still waiting for a detailed answer.

[gristy]

10. Buy European index funds

They track the market in Europe and they also track the Euro. Best of both worlds!

[flamingdem]

11. Those funds have been unreliable and tend to follow US markets lately

ishares EAFE is down 20% last I looked

[screembloodymurder]

16. Yep, and most of the other markets are even worse.

If the Bush plan fails (and look at his record) all markets will sink.

[Doctor Cynic]

12. This:

[OllieLotte]

19. Your question is timely in IMHO.

I actually was thinking that inflation was going to really slow down due to the falling price of oil along with other commodities and the financial crisis. Now that the US government is going to bail out the banks by borrowing money it doesn't have, I think the dollar is going to get pounded again.

[Alpharetta]

20. European bond fund

It's not a total hedge, but you buy it in dollars and they invest everything in European bonds. So you're taking currency risk that the dollar will rise. When the dollar falls, it does well.

I've used BEGBX as an effective hedge against the US dollar. Generally I've broken even on it, which is nice when US markets and the US dollar falls.

Please do not consider this financial advice or a recommendation. Just answering your question.

[screembloodymurder]

22. Thanks. Do you know what bonds the fund holds?

Are they short or long term?

[Alpharetta]

29. here's a link which shows what the fund holds

http://finance.google.com/finance?client=ob&q=MUTF:BEGBX (read the "Fund Summary")

Warning: Part of the problem with bond funds is that when interest rates go up (yields go up) the bonds the fund already owns are not as valuable. So with foreign bonds there's interest rate risk along with currency risk.

Since you asked me what's in the fund, I think you're better off not being a DIY investor. I strongly recommend talking to a fee-only advisor in your state. A fee-only advisor will pay for him/herself in 1 year, with the costs he/she helps you avoid. Plus better planning and decision-making.

[gravity]

21. The dollar is as safe as any other currency

It has actually been gaining strength over the Euro recently, so I wouldn't panic.

If you want to protect your assets, diversify, which you are doing buying the currency trust is achieving that same goal. Keep some money in dollars too to hedge against declines in foreign currency.

If you are concerned about the shit hitting the fan, put a small percentage of your portfolio into gold, like 5-10% just in case.

[GoesTo11]

23. Don't freak out

The dollar isn't going to drop by 90%. If it drops by 50% over a few years, which seems like a worst case, imports would be expensive, gas would be expensive. Houses and rent won't be much more expensive, education, taxes, healthcare, insurance, things like that won't go up much. If you want to do overseas travel, might be better to do it sooner rather than later.

[BeHereNow]

25. Check our CEF- consider buying some physical PM.

I just moved a huge chunk of change to both.
BHN
CEF web site to learn more-
http://www.centralfund.com/ on edit

[Duppers]

27. looks very interesting

thanks.

[spotbird]

28. Look up coin dealers in your phone

book. Drive to the store and buy Canadian Maple leafs, South African Krugerrands, bars etc. You will pay over spot, plus tax. You will also need a safe, fireproof, natural disaster-proof place to store them which is why most people don't' do it.