Thursday, November 8, 2007

The Dollar Is Slip Slidin' Away

This morning I went into my Fidelity account (like I do everyday) to take a look at where I'm at. I noticed that my traditional IRA has lost money this year! I guess that I haven't been keeping a close eye on it. I noticed that I had it in a horrible value fund. I looked at my other investments and noticed that I was up almost 70% on a southeast asia fund. I decided I had to take some action.

Everyone knows that the dollar is losing value which means that any money that we have in cash is worth less and less each day. This is increasingly important when planning for your retirement. Hurt most from the dollar's descent are folks whose income is derived solely from fixed-income investments such as bonds, annuities. Those who also invest in equity US stocks or mutual funds (case in point above) are also at risk.

So, what I've done is sell my position in the value fund and bought an emerging markets fund. I'll let you know how it goes!

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