Archive for category Currencies

Firstly, in our approach to dollar cost average or pound or Euro cost average does not mean one blindly buys any asset on an automatic withdrawal like a paycheck deduction for a retirement plan. It does mean that you are slowly buying into to stock and also currencies in a planned manner over several years with a special focus on dips. A dip is anytime the price of the asset you are purchasing is lower than your average price per share or currency unit.  We consider buying on dips.   Since CR Capital Advisors advocates diversifying away from US dollar that does not mean sell every dollar and buy Euro but it does mean begin diversifying slowly into several other currencies or “dollar” cost average into competing currencies.  One other quite unusual approach is that CR Capital Advisors monitors the purchasing power of these currencies in their respective countries, especially if we are buying currencies that are not “hard” currencies.  In other words, if one had to spend the money what is the purchasing power in that economy.  The most important benchmark for that spending power is real estate.  This kind of thinking serves as a hedge and allows or clients to see currency as not just an investment but buying power.  A fantastic example is the Euro vs The Brazilian Real or even more striking is the Euro vs the Argentine Peso.

This bill costs 715 US Dollars

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