USD
The dollar keeps dropping. Some of this is due more to perception than fact, although the perceptions are based on fact. For example, we have a high trade deficit, which right now has no major negative influence on our economy, but someday probably will. Same thing with the ever-increasing debt. Not to mention our massive unfunded liabilities in Social Security and Medicare. And investors feel that these are more important than our low unemployment and healthy GDP.
That's fine, I am not complaining. Regardless of the reasons why the dollar is dropping, though, people get upset about it. But they shouldn't. When the dollar is high, there are ways to be hurt by it, and ways to profit from it. Same thing when the dollar is low. Most of us shouldn't care whether it is high or low, we should just be ready to react to it.
So, I have some of my investments in European companies: even if they don't do quite as well as U.S. companies, they could still get greater profits because of the much healthier Euro. You could invest directly in the Euro. You could invest in American companies that have big overseas business.
It's not all about investing, either. You can buy American, as American goods become relatively less expensive. You could travel in the U.S. instead of abroad.
Like the climate, the only thing constant about economies is change. Don't panic. Adjust.
BTW, the Canadian dollar is supposedly closing in on the U.S. dollar. If it passes us, I say, just annex the whole "country." British Columbia can be North Washington. Yukon, South Alaska. Quebec, North New England. Manitoba: North North Dakota.
That's fine, I am not complaining. Regardless of the reasons why the dollar is dropping, though, people get upset about it. But they shouldn't. When the dollar is high, there are ways to be hurt by it, and ways to profit from it. Same thing when the dollar is low. Most of us shouldn't care whether it is high or low, we should just be ready to react to it.
So, I have some of my investments in European companies: even if they don't do quite as well as U.S. companies, they could still get greater profits because of the much healthier Euro. You could invest directly in the Euro. You could invest in American companies that have big overseas business.
It's not all about investing, either. You can buy American, as American goods become relatively less expensive. You could travel in the U.S. instead of abroad.
Like the climate, the only thing constant about economies is change. Don't panic. Adjust.
BTW, the Canadian dollar is supposedly closing in on the U.S. dollar. If it passes us, I say, just annex the whole "country." British Columbia can be North Washington. Yukon, South Alaska. Quebec, North New England. Manitoba: North North Dakota.
"It is the common fate of the indolent to see their rights become a prey to the active. The condition upon which God hath given liberty to man is eternal vigilance; which condition if he break, servitude is at once the consequence of his crime and the punishment of his guilt."
Leave a comment