KING DOLLAR

invest with alex usd

All bow before king dollar. Those who know me can testify that I have been a dollar bull for a long time. See, I am bullish on something. 

In fact, I have been advocating for a long time that the US Dollar is one of the best and the most undervalued investments out there. While most people run around screaming inflation and predicting destruction of the US Dollar the reality is quite different.

Yes, the FED is printing or creating a lot of dollars out of thin air. However, those are not real dollars. They are creating credit which is a completely different animal. At the same time there aren’t that many real dollars out there (well, relative to the overall money supply …including credit). 

So, what happens when there is a credit crunch and people need real money to repay the loans? You have guessed it, the value of the dollar goes through the roof.

USD Chart 

Now, this has been an easy and risk free investment strategy I recommended to my parents over 13 years ago.  I simply told them to accumulate/save as many US Dollars as they can and invest them in short term  T-bills and a few other risk free financial instruments. They have and so far they have done very well.  How well?

US Dollar Accumulation & Risk Free Investments:  +67% compounded over the last 13 years.  

While over the same period of time…..

DOW:  +15%

S&P:  +10%

NASDAQ:  -28%

Not bad if you ask me.  Particularly considering the fact that there is absolutely no risk involved and they are not managing an active portfolio. Well, it’s so easy and stress free that they are not managing anything at all.  I will continue to maintain this position for my parents for at least another 3 years.  That is until 2016 stock market bottom and initiation of inflationary environment.

I recommend you do the same. The US Dollar Index looks good from both technical and fundamental perspective. While it doesn’t really matter if you live in the US, any index appreciation gives you that much more for your buck. 

If you can, please share our blog with your friends as we try to get traction. Gratitude!!! 

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