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.
George Muñoz
Principal at Muñoz Group in Arlington, Va.
You could also consider investing in unique products, such as art, whose value is based on a global price rather than domestic dollars.
If you think the dollar's weakness will trigger inflation, you may want to consider Treasury Inflation-Protected Securities, or TIPS. The interest rate on these U.S. government bonds rises with inflation, so your return (although modest) is protected.
You could invest in U.S. companies that have significant earnings from overseas, especially from Europe and Japan. Companies with good export potential should be safe because their products will attract foreign buyers. Because the dollar is not weak against all currencies, you need to look carefully at where your portfolio companies are exporting.
Peter C. L. Timmons
President
T/R Financial Management Group in the District
Here's what you can do, from most conservative to most aggressive:
Several of these options involve risks and should be approached with care.
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