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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: mungofitch 🐝🐝🐝 GOLD
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Number: of 6131 
Subject: Re: where to store money
Date: 07/30/25 1:16 PM
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FXB or FXE or FXC
just as soon as I might put some cash into these, the dollar will strengthen. Given my track record.
For conceptualization purposes, holding the above (as opposed to t-bills / short term US gov’t bonds, say) would essentially be a bet that the dollar will continue to weaken. Is that fair, or too reductive a way of looking at it?


Putting all your money into those (or a similar broad mix) would be the stance that you don't trust the US dollar. It isn't a bet *against* the US dollar, since a rising dollar wouldn't hurt you. You'd merely be expressing the view that you don't wish to be bullish on the dollar so you abstain.

I think the best way to think of it is that a person with cash that they want to preserve, but without a strongly held forecast, should have a broad mix of major currencies. Anything other than a broad mix is a wager on the rising or falling of some of them, and who is that smart? So, sticking all your money in US dollars as a habit is subconsciously making a high confidence wager. Putting some other currencies in your portfolio isn't making a new bet, it's cutting back a bit on the one you're already making. Personally I'm holding a mix of British pounds, euros, Canadian dollars, and relatively few US dollars largely related to my derivative positions. (no particular order)

The safest thing I can think of is a broad mix of government issued inflation protected bonds in a mix of major currencies. This corresponds to the position that isn't making any call on the trajectory of inflation or FX rates, and takes no counterparty risk.

Jim
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