How to Profit from a Declining Dollar - and Understand Tax Rules on Real Estate

By Dinnen, Steve | The Christian Science Monitor, January 3, 2005 | Go to article overview

How to Profit from a Declining Dollar - and Understand Tax Rules on Real Estate


Dinnen, Steve, The Christian Science Monitor


Q: If a person believes the US dollar is going to continue to lose value, where is a good place to invest? The euro?L.B., via e- mail

A: Many pundits are predicting the dollar's continued decline, due in part to the large trade deficit. To date, Ray Benton, a certified financial planner in Denver, says that euro-denominated investments have benefited along with many other foreign assets.

But the relative values of currencies seem to self-adjust over time, Mr. Benton notes, making precise predictions difficult to make. So focusing on overall portfolio allocations is the best policy for most people, he says.

Diversified investment portfolios should include an allocation of international stocks and bonds - both of which have benefited from the dollar's decline.

In fact, investors with disciplined rebalancing programs may currently be taking profits from these segments and reallocating assets to other sectors. So maintaining a core portfolio geared to your long-term objectives is more likely to lead to success than short-term wagers, he says.

Nevertheless, if you want a pure play on the dollar's continued fall, Benton says that an international bond mutual fund may be a better bet than an investment pegged to a single currency.

Q: I'm uncertain about the 1997 capital-gains tax law revision on home sales. Assuming house values continue to rise, can one continue to defer the capital-gains tax owed by selling and reinvesting in a new home every few years and thus avoid the tax until distribution of the estate upon death? If so, does one owe capital-gains tax on the increased value of only the last house purchased? …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

How to Profit from a Declining Dollar - and Understand Tax Rules on Real Estate
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.