Capitalizing on the strong US dollar?

spectre71

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Quote from: el kaka22 on July 14, 2022, 05:40:15 PM

When you are in a "bitcoin"talk forum, I think the correct answer here should be "buy bitcoin" because it would allow you to hedge yourself against dollar very easily. If the price of bitcoin goes up, then if the dollar goes up as well it's double the profit, if the price of bitcoin goes down, but the value of dollar goes up then you are fine, if the dollar price drops but bitcoin price goes up then you are still fine.

The only bad would be price going down and value of dollar going down as well and both happens at the same time. I say you should be focusing a bit more towards how the crypto could help you and get you better and bitcoin is the starting point of that.

Well I'm in the economic area of the board, I think when you talk bitcoin you also have to talk about your overall position. It would be myopic to only look at bitcoin. Sure I have bitcoin but It's part of the overall package.

Part of that package is cash on hand. I want something other than USD that fits in my safe. Other currency is something I never glanced at but with a strong dollar I can make a smartish move. Two birds with one stone. If the euro gets strong again or stays as is, so what. I have value I can get ahold of in a timely fashion.

PS: I added some silver today maybe some more down the road in a few weeks if it's the same ish or lower. See I'm a farmer and bought 500 gallons of diesel when the keystone was shut down. Figure I'd hold onto that until a regime change then burn it.

Hydrogen

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Quote from: spectre71 on July 13, 2022, 10:21:48 PM

I'm completely ignorant on buying currencies as a hedge or a safer place than the US dollar.

With a strong dollar would it be wise to scope a few percentages of like the Swiss Franc?

FOREX investments are structured around the expected growth and performance of the economies of nations under expected future conditions.

If global inflation and recession persist, which countries are best suited to thrive under these conditions. Translating to stable fiat currencies over the long term.

Everyone has their favorites. FOREX trades are often leveraged due to volatility being low.

A strong dollar is a bet on silicon valley and big tech corporations like apple, google, microsoft and amazon giving the united states economy a distinct advantage over other nations in helping it weather inflation and recession.

Switzerland's economy is also structured in its own unique ways. Russia did threaten to invade sweden many years ago. Events like war also affect the value of currencies. It is possible war in ukraine is partly behind the euro losing value.

boyptc

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Quote from: stompix on July 14, 2022, 11:30:40 AM

Quote from: boyptc on July 14, 2022, 05:44:49 AM

I've heard it from someone who's focused in forex trading. He said that in times like this, the best currency to put money to and is like a safe haven for them is JPY.

Doesn't look like "safe" heaven to me:

That's what I've heard actually from him. I've got no idea if he's on an expert level or not but he seems in forex for a long time. Anyway, I did also my research and this is the first that has popped. It's USD, Swiss Franc and JPY as safe haven based on this article.

--> https://ideas.repec.org/a/nwe/eajour/y2020i4p579-591.html

But at the moment, we all know that in short that it's USD.

el kaka22

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When you are in a "bitcoin"talk forum, I think the correct answer here should be "buy bitcoin" because it would allow you to hedge yourself against dollar very easily. If the price of bitcoin goes up, then if the dollar goes up as well it's double the profit, if the price of bitcoin goes down, but the value of dollar goes up then you are fine, if the dollar price drops but bitcoin price goes up then you are still fine.

The only bad would be price going down and value of dollar going down as well and both happens at the same time. I say you should be focusing a bit more towards how the crypto could help you and get you better and bitcoin is the starting point of that.

Fortify

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Quote from: spectre71 on July 13, 2022, 10:21:48 PM

I'm completely ignorant on buying currencies as a hedge or a safer place than the US dollar.

With a strong dollar would it be wise to scope a few percentages of like the Swiss Franc?

Just a thought I've never had before.

Thanks

I'm not sure what you mean "to scope a few percents of like the Swiss Franc"? However if your primary currency is not the US dollar right now it seems like holding a bunch of dollars in your portfolio might be a good idea, although it might be just as sensible to simply increase the percentage of US companies in a share portfolio to achieve the same effect. For all the bluster that some people around here like to share, it is clear that the US dollar is still relied on heavily by most countries and people as the safe haven of choice when it comes to any crisis. The printing presses have been turned off for now and the supply is tightening up a bit, which is probably what is moving the value up in comparison to other currencies.

crwth

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From what I understand from your post. You are looking for an asset that would be a safer place than the US dollar, am I correct? So this means you will keep any asset other than USD, whether it's another currency, crypto, asset, etc., right??

That’s the correct way of taking advantage of your money because inflation can get half the value of your money. But when you hedge it, you can profit more.

Be careful with short-term gains because it can get you in the long run if there is a lot of printed money going into the economy.

palle11

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The fiat currency is not advisable to hold for investment because the policies of government do affect it, afterall it is a centralised currency. Dollar may be appreciating against different currencies including euro but that doesn't mean it will be that stable for the long time. Buying decentralised currency like bitcoin is advised, no individual currency have effect on it.

stompix

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Quote from: davis196 on July 14, 2022, 06:20:03 AM

Is the US dollar really that strong?

Yeah, it is, look at the charts!

Quote from: davis196 on July 14, 2022, 06:20:03 AM

I don't think that the US dollar is getting stronger, it's the euro that is getting weaker. This might be temporary.

Again check the charts, the $ is destroying every currency, it has won 7% even against the swiss frank.

Quote from: davis196 on July 14, 2022, 06:20:03 AM

Having a strong national currency while having gigantic multi-trillion dollar budget deficit and national debt seems like complete nonsense to me.

When your national debts are in the same currency you can print yourself you can have whatever debt you want, as long as people trust you to pay back that debt there is no problem, besides, most of the debt is held by the country itself through different layers of creditors, so no real reason for it to become unserviceable soon. As for the budget deficit, the same story, you can just print more!

Quote from: boyptc on July 14, 2022, 05:44:49 AM

I've heard it from someone who's focused in forex trading. He said that in times like this, the best currency to put money to and is like a safe haven for them is JPY.

Doesn't look like "safe" heaven to me:

Quote from: Moneyprism on July 14, 2022, 04:49:12 AM

compared to investing in USD, I prefer to invest in RMB.. the main reason is China's domestic market is very large and many countries have started using RMB as their international trade currency and RMB is more stable than USD

You're investing in a currency that has limited floating, with the central bank allowing it a limited appreciation/depreciation again a basket of currencies?

spectre71

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Thank-you and everyone for the replies, I'm learning and researching.

I do hold bitcoin and DCA into it weekly but I have before and will again give it a haircut when it goes and gets rowdy. Rebalancing my humble portfolio keeps me asleep at night and enjoy a gentleman's "hobby"

I've gone old school lately, what fits in my safe is actually mine. I can put gold, silver and my ledger in the safe. I will probably start with some euro's as liquidity should be easy. Having lived and worked in the silicon valley from . 1997 - 2004 I learned some expensive lessons then and got a refresher recently. Sure my other stuff like my 401k is a different beast.

Like Buffet I stay with what I know and understand when I manage my .0000000001 billion dollar portfolio

Thanks, keep it coming please

Quote from: _act_ on July 14, 2022, 03:40:05 AM

If I get you correctly, you want to buy US dollar and hold it? You can if you just want to hold it for short time period, but for long time period, it is not advisable. But bitcoin has fallen significantly, if you are not spending money for a long time, I will advice you to just hold bitcoin instead. Dollar is a strong currency, but know that its value still decline after long period of time.

davis196

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Is the US dollar really that strong? The Federal Reserve increased the interest rates a little bit, but USA still has the biggest budget deficit and national debt in the world. Having a strong national currency while having gigantic multi-trillion dollar budget deficit and national debt seems like complete nonsense to me. The EU countries and Japan aren't any better than the USA in terms of budget deficits and debts.
China has a low national debt, but the provinces have big debts. It seems that the global economy won't be getting out of the debt trap.
I don't think that the US dollar is getting stronger, it's the euro that is getting weaker. This might be temporary.
If you want to trade fiat currencies, just do it at your own risk and don't take any financial advise seriously.

boyptc

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I've heard it from someone who's focused in forex trading. He said that in times like this, the best currency to put money to and is like a safe haven for them is JPY.

That's what I've heard and not coming from me but on these times, if I'll be capitalizing myself into currencies. I'll choose two, EU and Chinese Yuan.

Because the basic rule in the market is this quote.

Quote

Everything that goes up, must come down.

NeuroticFish

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Quote from: spectre71 on July 13, 2022, 10:21:48 PM

With a strong dollar would it be wise to scope a few percentages of like the Swiss Franc?

I don't know how CHF goes, so I'll take EUR as example.
1 EUR used to be 1.1 USD or more (I think it was even 1.2). So in theory, if you indeed trust that EUR will recover and buy now EUR at current ~1:1 ratio, you may get 10% return when EUR recovers to 1.1.. if it ever recovers.

Since we're on a bitcoin forum, I'd add that there are good chances one would earn more and in a shorter timespan by buying bitcoin while current "crypto winter" lasts. But please don't take as a financial advice, please do as you think with your money.

Moneyprism

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compared to investing in USD, I prefer to invest in RMB.. the main reason is China's domestic market is very large and many countries have started using RMB as their international trade currency and RMB is more stable than USD

_act_

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If I get you correctly, you want to buy US dollar and hold it? You can if you just want to hold it for short time period, but for long time period, it is not advisable. But bitcoin has fallen significantly, if you are not spending money for a long time, I will advice you to just hold bitcoin instead. Dollar is a strong currency, but know that its value still decline after long period of time.

spectre71

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I'm completely ignorant on buying currencies as a hedge or a safer place than the US dollar.

With a strong dollar would it be wise to scope a few percentages of like the Swiss Franc?

Just a thought I've never had before.

Thanks

Topic: Capitalizing on the strong US dollar? (Read 126 times)