Tuesday, February 20, 2018

The Dollar, Get Out Now!

December 24, 2009 by  
Filed under Inflation Hedge Strategies

Tim Hason of Motley Fool says Get Out of Dollars Now

Tim Hason of Motley Fool

Writing for Motley Fool, on Dec. 17, 2009, Tim Hanson makes the case that the dollar might not be the best investment now. On his way to pitching Motleys’ /Global Gains newsletter, he suggests that investors look at non-dollar based alternatives instead of their favorite dollar based stocks.

For example, he tells us that if you like Abercrombie and Fitch ANF, he says you should take a look Fast Retailing Tokyo Exchange 9983.

Do you like Costco¬† COST ? Hanson says you should check out Price Smart PSMT. Although they are headquartered in San Diego, all of Price Smart’s 26 warehouse stores are located outside the U.S. (In Central America and the Caribbean.)

Looking at Black and Decker BDK? Hanson suggests that you might do better with Japan based Makita MKTAY

Hanson and his Motley Fool colleague, Brian Richards, were already sounding the alarm about the dollar, on March 25, 2009 they wrote:

while the dollar had a pretty good 2008, it won’t always be this way. When the current calamity subsides, the same investors who bought the dollar this year for its “safety” will remember that:

Their prediction was spot-on right until December 4, 2009, when the Euro topped out 1.51 vs. the dollar.
dollar. On March 25 the Euro was only  bringing $1.35.

Call it a dead cat bounce, or a correction, or whatever you want; the dollar has rallied all through the month of December. You can buy Euros now for a $1.44

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