Forum Moderators: martinibuster
Yes sure, normally things go up and down randomly and that's why even big players lose.
But this is not a normal period of time in the world (us record debt, euro replacing dollar as reserve currency, etc): Many major institutions in the world are focusing on euro, and this means zillions of dollars will travel back to U.S. in the years to come.
I'm just hoping it will be controlled decline - I do not want to wake up one morning and found out that pile of mud is worth more than pile of dollars.
On 3 August 2006, Italy's central bank announced that it would sell off a large portion of its dollar holdings and instead shift to British Pound Sterling. The reason Italy gave for doing out of fear of an "expected slide in the dollar." Russia, Sweden, and the United Arab Emirates had announced similar shifts out of the dollar into other currencies and gold earlier and cited the United States's "twin deficits" as the reason for the expected fall in the dollar's value.
I do not want to wake up one morning and found out that pile of mud is worth more than pile of dollars.
True, given the current climate a hedge against the dollar might be a good idea--which is not quite the same as speculation.
I'm wondering how foreign stock purchased with in the US with ADR's (American Depositary Receipts) react with large currency swings. Do the number of shares remain the same and simply increase in dollar value as the dollar drops? If so buying foreign stock (in the US) is probably the most convenient hedge.
[edited by: Andreals at 3:37 am (utc) on Nov. 26, 2006]
So hypothetically Nokia is better than Motorola if the dollar is declining but otherwise are roughly equivalent... hmmm...
but bad for us UK publishers.
That depends upon whether you are a UK publisher or a worldwide publisher based in the UK. In the former case then your advertisers will be mostly UK-based and increasing their CPC due to the weakening dollar so that you won't see a reduction in pound-sterline income, whilst in the latter case you are likely to lose out on average.
Who is the contrarian?
Some times the money that comes from adsense is needed, so the latter option is not always practical. However if you hold your payments and the dollar continues to slump, then your money will be actually losing value each month. I think you would probably be waiting a long time before you were able to see positive results. Besides I am always worried about Google 'looking after' held adsense money - it just never seems safe...
or do you hold your payments?
