Dr. Edward Stringham was quoted today in US News in an article on investing in a strong dollar next year.
His advice? Friends don’t let friends bet on a strong dollar.
[B]etting on the dollar can be risky, as it tends to lose value over the long term rather than gain, says Edward P. Stringham, president of the American Institute for Economic Research.
“While it remains to be seen what will happen to the specific value of the dollar over the next year, the [U.S. Federal Reserve] has a fairly established record of increasing the money supply and decreasing the value of the dollar over the long run,” Stringham says. “A dollar was defined as 1/20th of an ounce of gold up until 1934 and now a dollar buys 1/1,200th of an ounce. People with assets or pensions tied up in dollars see their savings or retirement whittled away.”
The gradual fall of the dollar means it’s hazardous to keep too much in assets like bank savings for the long term.
