The Dollar has been sliding steadily for close to a year,
and Wall Street has been rushing to introduce a spate of new investment
products to help investors profit accordingly. For those who do not want to trade currencies
directly, Exchange Traded Funds (ETF鈥檚), probably represent the best
alternative. The typical currency ETF tracks a basket of currencies and most ETFs
are characterized by low fees. In fact, over
$2.7 Billion is currently invested in such ETF鈥檚, which have risen from virtually
nothing over the last 7 years. Another
option is to buy CDs or other money market instruments denominated in other
currencies. Online banks such as
Everbank offer such products. Yet
another option is to buy shares in mutual funds that aim to mimic the returns
offered by investing directly in foreign money market instruments. Finally, one can simply buy shares in foreign
companies or in American multinational companies that do significant business
abroad.
Read More: Opinion divided on currency trading
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