I've been thinking a lot about the currency markets these days. With Greece attempting to wreak havoc on the Euro, and bring down the entire EU, and the UK potentially giving Gordon Brown the boot, what is a savvy investor to do? My viewpoint is to take advantage of the turmoil and invest in the US, especially in real estate. Uncertainty breeds opportunity so why not make some money?
For the European investor, facing a devaluation of one's currency makes one want to move money into other currencies, quickly. So why not invest in the US? the stock markets are already up, the bonds are likely going down as rates rise, but real estate is still at relative low valuations. If one takes a 3-5 year approach, one can get a double whammy of a trade, buying cheap real estate that will likely rise, and then repatriating money into the Euro (if it's still around) at lower levels.
Give me a call if you agree and want to park some overseas monies into doubly cheap Crested Butte, Colorado real estate.
(Diane Aronovic is a former Managing Director at Bank of America Securities, and a real estate agent at Red Lady Realty in Crested Butte, CO)