Without fail, the most common questions I get as I travel around the country are about the dollar:
How low will it go?
How can stocks rise with a sinking dollar?
What happens if the world stops investing in America?
Please—whatever you do—don't let the ugly facts about the falling dollar keep you from making money in 2008! What the negative press isn't telling you is how you can profit from the lowest dollar in 15 years. There's a gold mine of opportunities waiting to be seized!
But before I get into the specifics, let me give you the rundown on how the falling dollar really works.
A weak dollar does two things:
1. It makes foreign imports more expensive;
2. It makes U.S. exports cheaper on the world market.
Because a cheaper dollar makes foreign products more expensive, Americans are more inclined to buy American goods. The greater the demand for American products, the greater the number of U.S. jobs needed to sustain a sufficient supply.
And the more Americans are working, the more consumers are spending and the more American companies are profiting.
On a broader scale, a falling dollar generates greater revenue for our companies.
How does this work?