Please - whatever you do - don't let the depressing facts about the dollar keep you from making money in 2008. What the pessimistic press isn't telling you is how you can profit from the lowest dollar in 15 years. There is a extraordinary opportunity heading your way if you know how to seize it.

But first let me explain how the falling dollar really works. Then you'll see with your own eyes how you can profit. A falling dollar does two things:

* Makes foreign imports more expensive

* Makes US exports cheaper on the world market

The chain reaction not only increases sales of U.S. goods around the world but also creates more jobs for Americans. The end result increases the profits of U.S. multinationals.

And that's just the half of it.

Because a cheaper dollar makes foreign products more expensive, Americans buy more American goods as well-creating even more U.S. jobs. On a purely psychological level, it does even more than that: It creates greater investor and consumer confidence, as more Americans are working, more consumers are spending, and more American companies are profiting. On top of that, a falling dollar has one potentially bigger benefit. It reduces the trade deficit, further strengthening the economy.

And while there are others who might take exception to my simple explanation, they'll certainly agree on this: American exporters will make out like bandits. And it's all because American goods become much cheaper and the world buys more of them. The only unfortunate thing being that Oil is at an all time high also and has depressed some sectors of our economy. Consumer Confidence being one of them, but overall the low dollar has helped our economy.

Have you noticed that whenever the dollar hits a new low, the price of oil reaches a new high? It's no coincidence. As the U.S. economy slows, the Fed is cutting interest rates to shore up the housing market and stave off the credit mess. But in so doing, the Fed further weakens the U.S. dollar's value.

This is something the Fed needs to be careful about. The faster they cut interest rates, the weaker the dollar gets, which fuels oil's rocket-ride skyward. That's because crude oil is traded in U.S. dollars. When the dollar is low, other currencies are stronger, which basically means that people in other countries can buy more oil for less money. And that's what's happened.

Although the weak U.S. dollar/rising crude oil correlation has been with us since late 2002, it really became noticeable in 2007. This correlation has been utterly amazing to the point that if the U.S. dollar slips during the day, you can expect crude oil prices will correspondingly rise. Yikes! Clearly, the OPEC folks do not care if the dollar weakens, since the more the dollar falters, the more profits they see.

So what the Fed needs to watch out for is cutting interest rates too much, because the dollar will likely weaken further, and then oil could soar past $150 per barrel. $5 per gallon gasoline seems very likely this summer-certainly, no one wants that!

Page 1 of 2 :: First | Last :: Prev | 1 2 | Next