A local economics professor recommended opening a "checking account" (forex account?) in USD with euros. He estimates a 5 to 10% yearly growth in the EURO value of such an account. For instance, converting 500 euros to USD now and converting back in a year would net you 525-550 euros (excluding forex costs).
The idea seems to be that the USD is expected to continue climbing, especially compared to the EUR which is weak and unlikely to recover because interest rates are kept low.
- Is this solid advice?
- Would it be solid advice depending on the currency conversion costs?
- Does this carry the same risk as normal forex speculation or is it lower risk because it involves (seemingly) stable economies?