http://www.profitableinvestingtips.com/investing-trading/invest-in-the-dollar
Invest In The Dollar
As the debt dilemma continues and the Euro Zone increases its lending limit again the dollar is rising. Is it time to invest in the dollar? To invest in the dollar does not mean that a long term investor needs to become a Forex trader. But it does mean that he may want to look at investing in US automakers instead of regional overseas investment funds. As the dollar goes up and the Euro goes down, oil, denominated in dollars, becomes more expensive in a European economy headed into recession. Thus oil is heading downwards as well. The press quoted the Saudi oil minister as saying that global oil supply is more than a million barrels a day in excess of demand. A stronger dollar makes oil cheaper in the USA but drives up the cost in Europe. That is likely to assisting in worsening the Euro Zone economy while giving US businesses an advantage. While a European recession is helping drive down Chinese exports, US manufacturing is just under three years into a prolonged expansion. Perhaps it is time to invest in the dollar by way of US stocks.
The USA is decreasing its dependence on foreign oil through investment in sustainable fracking technology. As the US moves toward being the world’s number one producer of oil and natural gas, the price of natural gas in the USA has fallen dramatically. This is great news for US consumers and a boost to the US economy. Money that is not spent on oil as gas is available for investment that will help drive economic expansion. The US oil and gas industry is seeing boom times that are likely to continue. Manufacturing is up. And, the Chinese Yuan is being allowed to float more widely in daily currency trading. The issue of a cheap Yuan has plagued US industry for years as a cheap Yuan has helped Chinese companies sell for less in the USA. A more expensive Yuan will make US products more competitive both in China itself and worldwide. To invest in the dollar, an investor does not need to buy dollars and put them in the bank. He simply uses his dollars to invest in dollar denominated investments, especially in the USA.
A Greek financial collapse is back on the table and with that comes the possibility of an exit from the European Union. Investors are concerned that if Greece defaults on its debt, Italy, Spain, Portugal, Ireland, or even France might be next. If a “domino effect” set of financial collapses is likely a run on banks in Europe would likely be next followed by a shutdown in credit across the world. On one hand the wins by socialists in elections in Europe have upset the painfully ironed out debt relief deals now in place. However, a change of approach that would avoid painful austerity measures could avert a recession. The cost would be inflation and a still less valuable Euro compared to the dollar.
1. Invest in the Dollar
By www.ProfitableInvestingTips.com
2. As the debt dilemma
continues and the Euro Zone
increases its lending limit
again the dollar is rising.
Is it time to invest in the
dollar?
To invest in the dollar does
not mean that a long term
investor needs to become a
Forex trader.
www.ProfitableInvestingTips.com
3. But it does mean that he may
want to look at investing in
US automakers instead of
regional overseas investment
funds.
As the dollar goes up and
the Euro goes down, oil,
denominated in dollars,
becomes more expensive in a
European economy headed into
recession.
www.ProfitableInvestingTips.com
4. Thus oil is heading downwards
as well.
The press quoted the Saudi oil
minister as saying that global
oil supply is more than a
million barrels a day in excess
of demand.
A stronger dollar makes oil
cheaper in the USA but drives
up the cost in Europe.
www.ProfitableInvestingTips.com
5. That is likely to assisting in
worsening the Euro Zone
economy while giving US
businesses an advantage.
While a European recession is
helping drive down Chinese
exports, US manufacturing is
just under three years into a
prolonged expansion.
www.ProfitableInvestingTips.com
6. Perhaps it is time to invest
in the dollar by way of US
stocks.
The USA is decreasing its
dependence on foreign oil
through investment in
sustainable fracking
technology.
www.ProfitableInvestingTips.com
7. As the US moves toward being
the world’s number one
producer of oil and natural
gas, the price of natural gas
in the USA has fallen
dramatically.
www.ProfitableInvestingTips.com
8. This is great news for US
consumers and a boost to the US
economy.
Money that is not spent on oil
as gas is available for
investment that will help drive
economic expansion.
www.ProfitableInvestingTips.com
9. The US oil and gas industry is
seeing boom times that are
likely to continue.
Manufacturing is up.
And, the Chinese Yuan is being
allowed to float more widely in
daily currency trading.
www.ProfitableInvestingTips.com
10. The issue of a cheap Yuan has
plagued US industry for years
as a cheap Yuan has helped
Chinese companies sell for
less in the USA.
www.ProfitableInvestingTips.com
11. A more expensive Yuan will
make US products more
competitive both in China
itself and worldwide.
www.ProfitableInvestingTips.com
12. To invest in the dollar, an
investor does not need to buy
dollars and put them in the
bank.
He simply uses his dollars to
invest in dollar denominated
investments, especially in the
USA.
www.ProfitableInvestingTips.com
13. A Greek financial collapse
is back on the table and
with that comes the
possibility of an exit from
the European Union.
www.ProfitableInvestingTips.com
14. Investors are concerned that
if Greece defaults on its
debt, Italy, Spain, Portugal,
Ireland, or even France might
be next. If a “domino effect”
set of financial collapses is
likely a run on banks in
Europe would likely be next
followed by a shutdown in
credit across the world.
www.ProfitableInvestingTips.com
15. On one hand the wins by
socialists in elections in
Europe have upset the
painfully ironed out debt
relief deals now in place.
www.ProfitableInvestingTips.com
16. However, a change of
approach that would avoid
painful austerity measures
could avert a recession.
www.ProfitableInvestingTips.com
17. The cost would be inflation and
a still less valuable Euro
compared to the dollar.
So, here we are back to the
premise that to invest in the
dollar in the weeks, months,
and perhaps years to come may
well be a good idea.
www.ProfitableInvestingTips.com
18. Although we are not suggesting
any specific investments it
will probably be a good idea
to look at which business
sectors will benefit from a
stronger dollar, which
business sectors will benefit
from less expensive energy
prices, and which stocks are
likely to rise as a
consequence.
www.ProfitableInvestingTips.com
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