Beating Up the Dollar: Positioning Towards Emerging Debt, Currency ETFs [Podcast]

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 |  Includes: ALD, BZF, ELD, EWA, FXC, FXE, GLD, ICN, IEF, IEI, INR, SHY, SZR, TLH, TLT, UDN, UUP, ZROZ
by: Gary Gordon

So much has been said about the demise of the U.S. dollar, many investors may be getting tired of hearing it. Still, a smart investor has to keep his/her ears wide open.

For instance, gold has been flirting with $1600 per ounce. While many pundits believe that gold price gains are purely speculative, others have recognized the yellow metal as an inflation-fighter, a haven from central bank folly and a hedge against dollar devaluation.

I’m not suggesting that you jump into the SPDR Gold Trust (NYSEARCA:GLD) this minute. I am suggesting (and have been suggesting for many years) that you consider GLD whenever the exchange-traded vehicle pulls back 10%.

Of course, gold is not the only beneficiary of the U.S. dollar’s troubles. I’ve been acquiring shares of “unhedged” emerging market bond funds as well. Both WisdomTree Asia Local Debt (NYSEARCA:ALD) and WisdomTree Emerging Market Local Debt (NYSEARCA:ELD) offer relatively attractive yields from countries well-positioned to pay back obligations. What’s more, their currencies have steadily risen alongside the Federal Reserve’s quantitative easing timeline.

Since the Fed’s very first QE announcement in November 2008, Market Vectors Indian Rupee (NYSEARCA:ICN), WisdomTree South African Rand (NYSE:SZR) and WisdomTree Brazilian Real (NYSEARCA:BZF) have catapulted 28%, 78% and 82% respectively. And those are just a few of the currencies that have appreciated substantially against the greenback.

Whether you are interested in profiting in the era of quantitative easing, or whether you’re looking to protect yourself during the debt ceiling debate, the ETF Expert Radio Podcast below has something for you:

Disclosure: Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships.