Survey says: Falling U.S. dollar is No. 1 investor worry

JUPITER, Fla. – Oct. 15, 2007 – The falling U.S. dollar is the number one worry of U.S. investors, according to an investor survey conducted by Weiss Research’s MoneyandMarkets.com.

Among more than 2,325 investors voluntarily responding to the recent poll, 43 percent ranked the dollar decline as their single most serious concern. The fear of a recession or depression was a distant second, cited as a primary concern by only 20.8 percent of the respondents. Ranked third and fourth were terrorist threats, wars or future geopolitical crises (10.5 percent) and inflation (10.2 percent).

Respondents were asked, “What is the single most serious concern facing investors today?”

The summary of all responses included: the declining US dollar, 43.1 percent; a recession or depression, 20.8 percent; terrorist threats, wars or future geopolitical crises, 10.4 percent; inflation; 10.0 percent; the mortgage and housing crisis, 8.1 percent; and a stock market crash or bear market, 7.6 percent.

“The dollar has been declining steadily against most major currencies for over five years, with the Dollar Index recently falling to its lowest level of all time,” said Martin D. Weiss, Ph.D., president of Weiss Research. “So it should come as no surprise that investors are worried about it. Many appear to recognize the long-term consequences of a falling dollar on stocks, bonds, and real estate as well as the economic impact on our country as a whole.”

For protection, Weiss recommends investors consider strong foreign currencies, natural resources and other assets that go up when the dollar falls. “Years ago,” Weiss said, “it was difficult for average investors to buy foreign currencies or natural resources. Now, however, they are readily available through exchange-traded funds and other easy-to-trade instruments.”

© 2007 FLORIDA ASSOCIATION OF REALTORS

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