The dollar is weakening, U.S. interest rates are falling and the stock market, as always, is a crapshoot.
What’s an investor with a few thousand in spare cash to do? According to Donald P. Gould, president of Huntington Advisers, a small Los Angeles investment firm, the smart money is going into West German marks, Japanese yen, Swiss francs and other foreign currencies.
And, naturally, he’s got the perfect vehicle for making such an investment: Huntington’s Eurocash money-market fund, which operates like a U.S. money-market fund, except it invests primarily in foreign currency instruments.
“It’s a conservative way for an investor to profit from the declining dollar,” Gould said.
“On a longer-term basis, we feel that with the U.S. economy becoming a smaller part of the world economy, investors are starting to realize that they have to diversify their portfolios internationally.”
Huntington has been offering the fund since mid-July. So far, it has attracted a little more than $1 million, primarily from individuals, although Gould hopes to bring in major corporate customers and money managers.
He said he thinks the fund could grow to hundreds of millions of dollars.
Huntington Advisers is a wholly owned subsidiary of Long Beach Savings & Loan Assn.