Use access key #2 to skip to page content.

buffalonate (55.54)

How to Bet on The Dollar?



May 05, 2011 – Comments (4)

I think our deficit will get under control in the coming year.  Tax revenues are up 10% according to state governments.  We are getting out of Iraq and moving significant amounts of troops out of afghanistan which should save us around 100 billion a year. In the last 7 months the economy has gained 1.2 million tax paying jobs.  The 2012 budget will also make significant cuts in the deficit.  For these reasons I would like to make a bet that the dollar will rebound.  I have never invested in currencies so does anyone have any ideas on the best way to do that?  Thanks

4 Comments – Post Your Own

#1) On May 05, 2011 at 11:56 AM, rd80 (95.48) wrote:

I don't know the best way to make a bet on the dollar, but here are a few ideas.

1.  Pay down debts.  Being in debt (at least in US dollars) is effectively being short the dollar.

2.  Add to dollar denominated savings/money market accounts.

3.  There's an etf for that.  I don't recall the symbol, but there's at least one firm with dollar bullish and bearish etfs.  I'm sure a Google search would turn it up.

4.  Open a foreign exchange account.  You can effectively borrow against other currencies and buy the dollar.  Typically very levered.

Not necesarily advocating for or against any of these options.


Report this comment
#2) On May 09, 2011 at 8:25 PM, BillyTG (29.44) wrote:

Easy. Just buy UUP.  I actually bought some a couple months ago as a hedge, because I think there will be temporary strengthening in the dollar, especially relative to the Euro.  Long run I think the dollar sucks and will die, but that's besides the point.  One answer to your question is UUP.

Report this comment
#3) On May 09, 2011 at 8:27 PM, BillyTG (29.44) wrote:

Another ETF, if you're looking for relative valuations is FXE. It's the EUR/ if you're bullish on the dollar and bearish on the euro, relative to each other, you would short FXE.  If you become bullish on the euro versus the dollar, you go long FXE.  I'm short FXE, btw, right now, too, since I think the euro sucks and is due for a serious pullback versus the dollar.

Report this comment
#4) On May 09, 2011 at 8:45 PM, buffalonate (55.54) wrote:

Thanks, I will check into it.  I have never traded in currencies before but anytime I see something hitting a low or high I usually think contrarian.   

Report this comment

Featured Broker Partners