The euro is at a one-year low against the US dollar. Should I buy some?

[derby378]

I know the crisis in Greece could be enough to destabilize the euro out of existence, but how likely is this? Would it kill me to purchase $500 in euros from Thomas Cook and ride the storm out for a few weeks, or do you think this is too risky?

Any and all opinions on this are welcome.

[donheld]

1. Check out Thom Hartmann Then Deside

[arthritisR_US]

25. deside should be decide. n/t

[joeybee12]

2. Go for it...

...I can't see the Euro really sinking any time soon...I think we're in more trouble than they are.

[Statistical]

17. The Euro has been sinking for 5 months straight.

http://finance.yahoo.com/echarts?s=eurusd=x#chart2:symbol=eurusd=x;range=ytd;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined

While it may bottom out at $1.23 the idea that it CAN'T sink is kinda silly.

[supernova]

3. Now might be a good time to vist

some of the mor expensive Euro places. You'd get a good exchange rate.

[still_one]

11. Problem is the fee they charge you for converting dollar to euros, so it isn't quite as good /nt

[cbdo2007]

4. Yes I think you should put all of your entire life savings into the Euro!!!

ha ha, anyone who takes even the slightest bit of investment advice from DU is going to get what they're asking for.

After that you should take your x-rays to Walmart and ask the cashier for medical advice.

[still_one]

5. Buy URR instead. It is an ETF 2x long the Euro

The investment seeks to replicate, net of expenses, the Double Long Euro Index. As the index is two-times leveraged, for every 1% strengthening of the euro relative to the U.S. dollar, the level of the index will generally increase by 2% for every 1% weakening of the euro relative to the U.S. dollar, the index will generally decrease by 2%

If you want to short the Euro, buy DRR

[Statistical]

19. The inverse is EUO from proshares, a 2x short Euro option. n/t

[still_one]

26. Thanks /nt

[zipplewrath]

6. Speculating?

Currency speculation is a good way to lose alot of money.

Now, if you are going to be going on a vacation soon, you might want to "lock in" the low exchange rate. Sorta a "loss protection" strategy. But Thomas Cook is probably gonna hit ya for 7-10% anyway so I don't know what kind of return you are hoping for. The Euro has been as low as 0.95 in it's history.

[Statistical]

22. Actually as low as $0.84 and as high as $1.58.

[old mark]

7. As an investment? If you have the cash to spare it would be an interesting experiment...nt

[TrogL]

8. Read this week's The Economist magazine on the crisis in Greece

...before you do anything.

[gravity]

9. It wouldn't kill you to put that much in euros

but I would say your chances of making a gain is 50%.

[harun]

10. I don't consider buying money investing.

[Romulox]

12. I think currency speculation is too risky for someone who asks this question on DU

I think currency speculation is a game for the day traders. What do I know, though?

[MindandSoul]

13. I'm buying some. . . but I plan to spend them during my two months stay in Europe this Summer!

So. . .it's not as an investment!

[derby378]

14. You should hopefully get a nice return on that, though...

...in terms of food, transportation, souvenirs, etc. Enjoy your stay! :hi:

[MindandSoul]

23. At least it will make my vacation more affordable!

so. . .I'll probably find too many "deals" and over spend!

[Statistical]

15. Investment advice on internet is generally useless but there is some speculat Euro may reach parity.

That is 1:1 with dollar.
If that happens and you are long the Euro... ouch.

As far as method buying currency is generally not a good idea. Simply put the bank fees on both sides of the trade will eat any profit and make it very hard to get ahead.

The "pure" method would be Forex but that is often more risk than most are willing to take.

There are some ETF which track Euro up or down and some are leveraged 2:1. For example EUO is a 2x bear Euro ETF. Every 1% euro declines the fund tries to return 2% profit.

Personally I am short the Euro since January and am considering buying to cover but pretty much every single week it goes even lower.
$1.30 and $1.25 were major support and it blew threw them like they were paper.

If I wanted to get long the euro I would short the dollar index instead. Dollar will be facing pressure from many currencies and being short dollar index (composite of all major currencies vs dollar). You could be wrong about Euro and still profit.

[Warpy]

16. It's a gamble

and the rule is never to gamble anything you can't afford to lose.

So don't bet the rent.

However, it's even money whether or not the rest of the PIIGS will collapse sooner rather than later. That's four more countries that are financially tottering and ready to fall now that Greece has been stabilized, and I'm not sure the world can bail them all out.

That's what makes it a gamble instead of a sure thing.

[AngryAmish]

18. It is very foolish to ask my advice about anything.

Very.

[ThomWV]

20. No, you should be buying stocks valued in Euros

Because you'll still own the company no matter what currency ends up on top. Buy German blue chips.

[Bigmack]

21. How about Canadian Dollar.....

It's high at the present time, but could go higher.

Their banks have these strange requirements that don't allow them to take the money and put it on "red" at the casino.

[safeinOhio]

27. I'd buy the Looney over the Euro

just because of the name.
Canada has great bank laws, gas, oil and hockey.

[notesdev]

24. No

The Euro is destined to fall apart, and it may happen more rapidly than you think. An obsolete currency will be worth nothing.

[CountAllVotes]

29. my European friend agrees

he is no financial whiz by a long shot but he told me a long time ago that is was stupid to invest in the Euro.

He said that the dollar is a "much older currency and has stood the test of time".

Luckily I believed him and no, do not invest in Euros. It could crash and if you've ever been to the EU and seen what how inflated the prices are you'd see why it is hopeless to invest in these.

Some talking head on the tee vee said yesterday that one would have to be insane to invest in Euros or any foreign banks for that matter at this time; the Euro doomed to fail.

So, you've been warned. Don't do it is my opinion.

:kick:

[MilesColtrane]

28. Is it too risky?

It's not too risky if you are willing to never see that 500 bucks again.