Protect Yourself Against the Weak Dollar
Howard Gartenhaus
Wealth Manager at Gartenhaus Financial in Rockville, Md.
You could consider purchasing mutual funds that invest in international stocks and/or foreign bonds. When you make such purchases, you are converting dollars into the foreign currencies through the holdings of the mutual fund. Make sure the fund does not hedge for currency fluctuations.
There are many exchange-traded funds linked to commodities such as precious metals, oil and agriculture. Mutual funds that invest in companies that mine for precious metals, produce natural resources, or explore for and sell energy are also available.
Another option is to purchase ETFs that are linked to foreign currencies. For instance, it is now very easy to invest in the euro, yen, or the Swiss franc in this manner.
An important caveat: Many of the these ideas are volatile, and investors can lose money due to substantial price fluctuations.