U.S. Dollar Will Lose Its Value
1-12-11

Because of the following reasons, the U.S. dollar will keep losing its value:

1. The U.S. stimulus packages are aimed at to maintain the current consumption, not to compete in the global market.
2. Because of printing money, eventually we will face with higher future inflation.
3. The annual budget deficits in the trillions of dollars.
4. Higher interest payments will reduce and drain resources for the economic growth.

What are the investing strategies should be considered?

1. Avoid U.S. long-term bonds.
2. Emerging market corporate obligations with floating interest rates.
3. Find sound policy countries (stocks) and currencies such as Canada and Brazil.

Nobody knows how soon we will see the higher inflation and a weaker dollar but we are definitely moving into that direction.

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