The signs are almost unmistakable. The US dollar has fallen some 18% in the past four months against the euro. It is now below parity against the Canadian dollar, Australian dollar, and the Swiss Frank, and it is at decades low against the Japanese yen.
With the continued wanton Quantitative Easing in the US - printing money out of nowhere - nervous investors are dumping their dollar positions as fast as they can and moving into safer havens.
What are those safer investments? Well, just about anything but a cash position in the US dollar. Foreign currency, gold, real estate, and even stocks (specially shares of multinational companies) offer some measure of protection against the possible catastrophe awaiting the dollar.
It remains to be seen whether the dollar will actually experience a calamitous crash, but given the current environment, that scenario seems ever more imminent.Robert Hashemian is VP of Web Development for TMCnet.com with a keen interest in financial markets. To read more of Robert’s articles, please visit his columnist page. He also maintains his personal Web site at www.hashemian.com.