LA QUINTA, Calif., Feb. 1 /CNW/ -- "The dollar has been in decline for
the past five years and could swiftly slide into crisis. If it does portfolios
will require rapid and dynamic money management to survive." So says money
manager Michael McDonald (http://www.crisis-recovery.com), announcing the
launch of the "Dollar Strategy Global Fund" today.
This no load stock and bond fund is designed around the dollar. "Our work
indicates the dollar problem will end climactically and not in a soft landing.
We are expecting a classic cycle: a dollar decline -- leading to a crisis --
followed by a slow recovery. The impact on global markets would be severe,
even those with strong currencies," he says.
McDonald says that's the big investment challenge. He says most global
funds use static diversification methods across the world to simply minimize
any single country or currency risk. "That won't do well in this situation,"
he says. "It will take dynamic management with a purpose. Remember -- world
stock markets declined from 20%-50% during the relatively minor Asian crisis
in 1998. What happens when the problem country is the United States itself?"
He is expecting this problem to carry well into the next decade. "The
entire dollar cycle should occur in four investment zones. Each zone should
favor a specific investment and currency class," he says.
The first zone, which we've been in for five years, is the main part of
the decline. The investment focus should continue to be foreign and American
investments (stocks and bonds) whose income and revenues come primarily from
The investment focus of the last zone -- the long recovery period -- will
probably be domestic and foreign securities whose revenues and earnings which
come primarily from the U.S.
Anticipating a new American economy to emerge from this, McDonald adds,
"A dollar crisis will lead to very high import prices leaving less money to
spend on our huge service economy. This sudden shift in how Americans spend
money will change the fabric of our economy."
The Dollar Strategy Global Fund is administered by Premier Fund
Solutions; Huntington Bank, Custodian; Mutual Shareholder Services llc,
accountant and transfer agent; legal counsel: Thompson Hine.
Dollar Crisis and Recovery Partners http://www.crisis-recovery.com
For further information:
For further information: Erin Gilhuly, +1-760-776-1766, cell,
+1-760-641-0739, firstname.lastname@example.org, for Dollar Crisis and Recovery Partners Web