by rose-colored-coolaid » Thu Nov 29, 2007 9:46 am
Lamont, it depends on your 401k. If it has any international funds, go with those. They should be invested in international companies with growth prospects. This is actually better than investing in a currency anyways, because if the company does well and the dollar stabilizes, you win. If the dollar crashes, you win.
Alternatively, you can put the money into large caps. When the dollar falls, it makes products by GE (for example) cheaper in foreign countries. This should in theory boost sales, which would cause the company to grow faster than the dollar falls. Other larger companies with international sales should produce similar results, hence large caps funds.