Many speculate that the dollar is in for a rough time now that the Treasury is getting ready to print almost a trillion new dollars. Combine that with the significant probability of a cut in interest rates before the end of the year, and you've got ripe conditions for a dollar fall. So where should you look?
Everbank sent me an interesting email the other day about their Debt Free Index CD. The new Debt-Free Index CD is comprised of equal parts Singapore dollar, Japanese yen, Swiss franc, Australian dollar and Brazilian real.
Why these currencies? All 5 economies have a strong balance of payments - a factor that could aid performance against the U.S. dollar. Of the 5 economies, only Australia has a trade deficit - and the gap appears to be narrowing.
The CDs are available in 3- and 6-month terms with a $20,000 minimum deposit. While the CD is FDIC insured against bank insolvency, please keep in mind that you could lose principal as a result of currency fluctuation.?
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