Great Lakes 4x4. The largest offroad forum in the Midwest - View Single Post - When will it end?
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Old July 14th, 2008, 06:28 PM   #15
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In a few years, the dollar will rebound and those companies will be bought back by US companies when the foreign companies can no longer afford to keep them due to the currency exchange risk. If AB did this right, they would take foreign currency for payment. Then it would be a hedge against the falling dollar. As the dollar depreciates, their foreign currency value escalates. Eventually, when the dollar bottoms out, they can buy it back for a lot less than they sold it for, pocket the margin on the currency spread, and be miles ahead. We shall see how the AB stakeholders play this out. This is much like I tried to convince myself to do a year or so ago. I should have converted my retirement accounts to foreign currencies that were/are gaining against the dollar. I would have made a fortune in a year as the dollar has tanked. That took more hangy down things than I have to swing that type of trade though.
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