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Three Ways to Play the Dollar's Current Spiral

 Mar 26, 2008 05:14 PM UTC
Symbol Sentiment Start Return Closed
GLD Positive 03/26/08 -0.77% 07/02/08
RYJCX Positive 03/26/08 -15.11% --
BA Positive 03/26/08 -34.56% --
NUE Positive 03/26/08 -45.51% --
IP Positive 03/26/08 -12.46% --

3/25 - "There are few factors more beneficial than a weak dollar in restoring the U.S. economy to full strength. Far from representing an economic "death spiral," a weak greenback represents the DNA spiral that can give the economy new life, especially in exporting sectors. Ideally, the U.S. balance of payments deficit could be sharply reduced and the housing market stabilized before interest rates have to be raised to fight inflation. When rates are raised - and they will be - the dollar will inevitably strengthen. At that point it might indeed make sense to "intervene" against its newfound strength and cushion any domestic recession.

To play this scenario, I would make three recommendations:"


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