Now this is new to me but it makes sense. If we are investing in something we want it to be in something that is going to give us a return.
The American dollar isn't the top of the stack when it comes to money though. I was reading this and thought perhaps you would find it interesting too.
Quote:
For all those years when the dollar reigned as the unquestioned king of currencies, we Yanks never gave it much thought. A dollar was a dollar, and all other currencies were there merely to befuddle us when we were traveling in foreign lands.
Not anymore. As the greenback swoons, more Americans are trying their hand at the gigantic market for global currencies. With daily volume of $4 trillion, this market is ruled by big financial institutions and venturesome hedge funds. But a raft of new exchange-traded funds and products is giving a lift to the little guy, allowing him to protect his long-term U.S. investments from dollar erosion and to profit from the strengthening currencies of emerging markets.
In short, currencies are emerging as a true asset class for individual investors. They eventually could take a place alongside stocks, bonds and commodities.
More attention to currencies couldn't come at a better time. Ray Dalio, the founder and chief investment officer of Bridgewater Associates, with nearly $90 billion under management, predicts there will be a "seismic shift" among currencies as early as next year, similar to what occurred after the breakup 40 years ago of the Bretton Woods international monetary system. That was when the United States dropped the gold standard, and foreign currencies formerly fixed to the U.S. dollar began to float more freely -- and sharply appreciated against the dollar.
|
Now trading currencies seems to be the new in and may well be worth looking into.
Quote:
How does this market differ from other markets?
Unlike the trading of stocks, futures or options, currency trading does not take place on a regulated exchange. It is not controlled by any central governing body, there are no clearing houses to guarantee the trades and there is no arbitration panel to adjudicate disputes. All members trade with each other based upon credit agreements. Essentially, business in the largest, most liquid market in the world depends on nothing more than a metaphorical handshake.
|
There is alot of information out there and I will certainly be looking into it as a possibility.