US Dollar sinks to new low against Euro

(Ruud) wrote in message . com...
(Tom Seim) wrote in message om...
(Mike Stringfellow) wrote in message . com...
The US dollar is now valued close to 0.75 Euro, down from its peak of
1.25 a couple of years ago. Analysts say it may go even lower, with
some projecting exchange rates of 0.7 (1.4 dollar to the Euro).

This has pretty much put the kibosh on my goals of buying a new
European sailplane. A model at, say, Euro 85,000 cost around $70,000
a couple of years ago, is now around $110,000 and may soon be at
$120,000.

Economic models would suggest a strong incentive for sailplane
manufacture in North America, but I wonder if the numbers of potential
sales would justify this.

Any thoughts?

Yes, invest your money and wait. For instance, if you put your money
in a high quality mutual fund you will begin accumulating principal.
Take your $70,000 and put in a Morningstar 5-star fund (i.e. Fidelity
Contrafund). If you average 15% return the numbers a
Year Amount
0 $70000
1 80500
2 92575
3 106461
4 122430
5 140795
6 161914
etc.

At some point the price of the glider, converted from euros, is going
to be less than your investment. BUY THE GLIDER! This is, simply, the
power of compounded interest.

Don't agree with my numbers? Then put your damn money into a mattress
and see what happens!

The moral of the story is that patience is on the side of the buyer.

Interesting story.
The only trouble with it is that an average return of 15% on your
investment is not enough to keep up with the free fall of the US
dollar.

Your grasp of international money markets is truly awesome! Have you
considered running for Alan Greenspan's job?

You might bother to check out what has happened historically to
international exchange rates: they oscillate. This is merely one more
cycle in the oscillation. Otherwise, by your logic, the dollar will be
worthless in 5-7 years. Invest and wait, that's my advice. Of course,
if you're loaded with dough, go for it!