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U.S. Dollar Index

The U.S. dollar continues to fall, and now an even stronger force will pull the euro up even farther, and therefore, push the dollar even farther down.

This force is the ongoing German economic recovery which means that the single unit currency, the euro, will continue to strengthen as the primary offset currency to the dollar. As the dollar becomes weaker, the euro will become stronger, in part due to that relationship.

According to a recent story in The International Herald Tribune: "Evidence is mounting that consumer spending, an engine of growth that has not fully kicked in, is starting to pick up after a long lull. On Monday [May 08, 2006], an index of the 12-nation euro zone's retailing industry by NTC Economics reached its highest level since January 2004, when the poll began."

Ergo, the dollar continues on its downward path, wreaking economic destruction for those who wealth is tied to dollar-denominated assets.

The dollars you get from the government in Social Security benefits payments will always be worth less than the dollars you donated to the program. Which means that you need to hedge the risk inherent in your willingness to accept the government's paper in the future.

Do we at The Institute Of Higher Earning fret over the demise of the dollar? No, we trade it. A downward trend is a trend, nonetheless. If a stock, fund, index or other vehicle is trending -- up or down -- we can trade it. All it has to do is move. In this instance, the dollar is headed down and will very likely continue to do so for the foreseeable future.

One way to hedge the debasement of government paper is through precious metals: gold, silver, platinum, palladium and rhodium. Another way is through mutual funds that profit from a falling dollar.

The article below (from our free, public web content) mentions the ProFunds Falling U.S. Dollar Fund (FDPIX).

However, there is another mutual fund that lets you receive DOUBLE the decline of the U.S. dollar against a select basket of foreign currencies -- i.e. this fund goes up 2% for each 1% drop in the U.S. Dollar Index.

It's called the Rydex Weakening Dollar Fund (RYWBX). Because it is leveraged to deliver double the performance of the U.S. Dollar Index, for every 1% the index drops, this Rydex fund rises by 2%.

To view current and historical performance of the Rydex Weakening Dollar Fund click here.

You can buy this fund as easily as buying a stock. Log in to your online brokerage account and type in the fund symbol 'RYWBX'. As with many mutual funds, there is a minimum amount to start with, in this case $2,500.

Original Article
Tremendous downward pressure is now being exerted on the U.S. dollar. To watch the continuing decline in purchasing power of those green coupons in your purse or wallet click here.

At The Institute Of Higher Earning, creator of the Two Steps To Wealth program, we also teach Forex currency trading. Each day we trade the U.S. dollar up and down against the euro, the British pound and other foreign currencies. This can be a very lucrative way to make a living.

But how can the investor who does not wish to day trade currency, live, in the spot global cash market take advantage of major trends in the dollar?

One way is to buy shares in a mutual fund that profits from a falling dollar. One such fund is the ProFunds Falling U.S. Dollar Fund (FDPIX) which is indexed to the NYBOT U.S. Dollar Index and designed to deliver the inverse of the dollar index's performance. Translated, this means that for every 1% the U.S. Dollar Index drops, the fund rises by 1%.