Profit on dollar's nosedive

Hypothetical... If one were to believe that the U.S. dollar will plummet very soon, what would be the most profitable way to profit from that?

[Broken Arrow]

Um... you hold it?

Other people can comment more fluently on this, but if one believes that the dollar is undervalued, one would simply buy and hold a certain amount of cash proportional to your portfolio.

Or are you looking for a way to shelter your dollar from nosediving any further into recession?

[Hypersion]

PLummet compaired to what?

Gold
Euro
Yen
Peros?

Bread and water?

[Broken Arrow]

Compared to the dollar several years ago.

Originally Posted by Hypersion

PLummet compaired to what?

Gold
Euro
Yen
Peros?

Bread and water?

Yes.

Just thinking out loud here...

Commodities (gold, silver, oil) are a good way to hedge, but they've had a good run, right? A downturn in the economy would cause these to fall right along with the dollar.

Obviously holding euros or yen or yuan would be profitable if the dollar declines, but maybe better than just holding foreign currency would be to buy foreign stocks and bonds so you also get a return on the investment.

Some articles say that emerging markets stocks are ready for a downturn too, so I guess that leaves just mainstream international investments... Or, domestic stocks of companies that have large overseas investments.

[Scanner]

I have a good amount of portfolio in silver, partially for this reason, partially because I think as an industrial metal, it will be in demand.

However, that being said, I think the next administration, as per JimOhio, will seek to strengthen the dollar.

It was an interesting day. Stocks way down. Gold down. Silver way down. Dollar up, interestingly. VIX (volatility index) way up.

[mekish]

i think it can't get much worse, already importers into the US are suffering. its a good time to buy!