A strong dollar trend has reversed

US dollar has never become strong again since it cut its tie to gold over a half century ago. Actually it has lost over 90% of its purchasing power since then. Saving dollars in the bank is one of the most stupid ideas as it’s a guaranteed way to lose money. If you don’t know how to invest, buying gold and/or properties is one way to keep your money’s value. An equally efficient way to increase your dollar value with virtually no risk is to buy an appropriate life insurance.

Having said that, it is certainly not a straight line down for dollar’s downtrend.  From time to time, dollar will bounce back, even strongly at some time. Last two years has been such a good time for the US dollar. But the happy days for US$ has come to its end. Very clearly US$ has turned it tide and has started to move down for months now. This downtrend will continue for several years likely. The final bottom of this round of downtrend for US$ index could be around 75-80 or even lower from its current level around 100.  Buying some foreign currencies as currency diversification should be a good idea if you have a lot of US$ cash. Euro (FXE), UK Pound (FXB) Can$ (FXC) or Aus $ (FXA) will all be better than US$ moving forward.