Can You Protect And Grow Your Wealth Using Etf

Can You Protect And Grow Your Wealth Using Etf

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With the threat of inflation looming and the value of the dollar sinking, how can you protect your wealth? The stock market has shown some recovery but with economic growth weak and unemployment unchanged can the markets continue to rally? The Federal Reserve has just printed another $600 Billion dollars (QE2) of paper money and used most of it to buy paper Treasuries which puts more downward pressure on the US dollar. Can using Exchange Traded Funds (ETF"S) be an answer to help protect your wealth?

Currently, the Federal Reserve seems set on a course to continue the devaluation of the US dollar. The Federal Reserve was created to keep the US dollar stable but is currently allowing the value of the dollar to fall to save the banking system from complete failure. The Federal Government does not appear to be able to stimulate industry to create jobs making the current economic recovery a "jobless recovery" which will be unsustainable. So where do we as average citizens turn to protect our wealth from the falling dollar and unstable economy? I am going to suggest putting a portion of your wealth into Exchange Traded Funds or ETF"s.

What is an Exchange Traded Funds or ETF? It is essentially a basket of securities that are designed to track a product, commodity, index or currency. I am specifically referring to the purchase of ETF"s that are backed by gold and silver and ETF"s that represent major foreign currencies.

The gold and silver ETF"s are going to give you protection against inflation/hyperinflation. Both gold and silver backed ETF"s also have the upside of increased wealth as the price of gold and silver continue to rise. Look for ETF"s that are backed by actual physical gold and silver and not just paper assets like stocks of gold producing companies.

Foreign Currency backed ETF"s have several advantages that can help protect and grow your wealth. First, they allow you easy access to the foreign currency market without trading in the FOREX directly and there are several ETF"s that trade on the New York Stock Exchange (NYSE). Second, the currency ETF allows you to hedge against the continued decline in value of the US dollar by holding a portion of your wealth in foreign currency. You can buy currency specific ETF"s that represent individual foreign currencies such as the Swiss franc or the Japanese yen. Finally, you can profit by buying a foreign currency ETF that continues to rise in value as the economy behind the currency grows and expands.

By doing some research you will be able to find ETF"s that will allow you to protect a portion of your wealth from the declining dollar. You will grow your wealth by selecting specific ETF"s that will continue to grow in value today and in the future. The future looks like several foreign currencies will show strong growth when compared to the US dollar. If you use ETF"s you will protect and grow your wealth.

About the Author:
Mark Johnson is a life coach and consultant, who loves getting the most out of life and enjoys helping others to do the same. He enjoys a full life with his family and horses on his ranch in the Rocky Mountain Foothills. Mark is the founder of Your Wealth and Wisdom. Visit his website http://MoneyWealthWisdom.com
It is my mission to help everyone learn to become wealthy. There is more than enough for everyone because we don"t all define wealth in the same way or want the same things in life. You can learn more about how to make money, build businesses, protect your wealth, eliminate debt and develop passive income streams at my website



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