The Best Thing America Has Going for It
Monday, October 1st, 2007
By Michael Lombardi, MBA for Profit Confidential
As the U.S. dollar continues its decline against other world currencies, something wonderful is happening behind the scenes. American companies are starting to export again (something they haven’t done in decades), tourism is up and a buffer is being built into the declining U.S. vacation property market.
A lower U.S. dollar means many of the items American companies make are now affordable to foreign buyers who were buying them elsewhere. I have read many articles and data about our shipping channels being busy shipping our goods abroad… something that has not happened in years. This is good for American business.
Americans won’t be traveling as much to Europe in 2008 because it is just too expensive in American dollars. But because of the weak U.S. dollar, we should see tourism really pick-up in the months ahead, as foreigners find traveling in the U.S. becoming cheaper and cheaper. I predict the shops along 5th Avenue in New York will boom in 2008, as foreign buyers flock to buy luxury goods at even cheaper euro and yen prices.
We all know the property market in the U.S. is in trouble. The boom is over, the bust is in. But what is a European who has a vacation home in the U.S. to do? He or she could sell and take a hit on their currency. But that will not happen. Europeans, Canadians and South Americans will likely continue to hold their American property, playing the currency waiting game. And all those foreigners that were looking to buy property in Florida, Arizona and California… well, because of the declining U.S. dollar and the soft American property markets, those properties are looking very attractive to foreigners right now.
I have often written about the severe problems the U.S. economy is facing. But the best thing — or should I say the best medicine — America has going for it right now in the declining U.S. dollar. If the people in Washington and at the Fed can slowly continue to decline the value of the U.S. dollar without having it collapse all at once, the declining value of the greenback could be the savior for the fragile American economy.
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Tags: euro, U.S. dollar, U.S. economy
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Michael bought his first stock when he was 17 years old. He quickly saw $2,000 of savings from summer jobs turn into $1,000. Determined not to lose money again on a stock, Michael started researching the market intensely, reading every book he could find on the topic and taking every course he could afford. It didn’t take long for Michael to start making money with stocks, and that led Michael to launch a newsletter on the stock market. Today, Michael only employs the top market analysts and editors. Some of our recommendations have posted gains in excess of 500%! Michael has authored and published over one thousand articles on investment and money management. Along the way to building Lombardi Publishing Corporation, now with over one million customers in 141 countries, Michael became an active investor in real estate, art, precious metals and various businesses. Readers of the daily Profit Confidential e-letter are offered the benefit of the expertise Michael has gained in these sectors. Michael believes in successful stock picking as an important wealth accumulation tool. Married with two children, Michael received his Chartered Financial Planner designation from the Financial Planners Standards Council of Canada and his MBA from the Graduate Business School, Heriot-Watt University, Edinburgh, Scotland.Follow Michael and the latest from Profit Confidential on Twitter
