ETF’s for the Falling Dollar

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I have been a big believer in the weaker dollar theme (not sky is falling) for a while now. Below are some ETF’s you can use to play it. Sweden and Australia both offer higher domestic interest rates. Gold usually does well in an inflationary environment. If you don’t want to trade foreign exchange directly through the FOREX market, these ETF’s are a good way to play the currency moves.

• Swedish Krona ETF (FXS) - The Swedish Currency ETF. The Yen Carry Trade isn’t dead yet. Sweden is a a big target of investment for much of the Yen-Carry trade. A good play as U.S. interest rates drop. We’ll be investing more overseas.
• Australian dollar ETF (FXA) - Australia has some of the highest interest rates of the western nations. Much of the Yen-Carry trade money moves here. Also a good play as the U.S. interest rates drop.
• Gold ETF (GLD) - A hedge against inflation. The U.S. is entering a period of higher inflation and old should benefit. Buy this ETF as an easy way to trade with gold.

Also I would continue to recommend the Icelandic Krona as an short-term (3 month) play. You can invest in it through Everbank.

Related Posts:

• How to earn 12.28% in a 4.5% World
• What does the potential Fed rate cut mean?
• What a weak dollar means to the U.S. investor
• How I made money with the Fed Rate cut