Tony Sagami Discusses The Importance of The Dollar Decline In New Article

Tony Sagami discusses the importance of the declining dollar and how it's affecting the U.S. economy as well as foreign economies. In this issue of Money and Markets, Mr. Sagami talks about how the declining dollar is making U.S. assets cheaper.

Jupiter, Fla. (PRWEB) September 27, 2007 -- Tony Sagami discusses the importance of the declining dollar and how it's affecting the U.S. economy as well as foreign economies. Mr. Sagami talks about how the declining dollar is making U.S. assets cheaper.

The Dow Jones added 417 points from September 18 through last Friday. For all of last week, the Dow gained 2.8% and the Nasdaq tacked on 2.7%.

U.S. stocks, weren't the only markets making big moves last week. Hard-asset investors did even better as the price of gold jumped to a 27-year high of $747.10 an ounce and oil futures hit an all-time intra-day high of $84.10 a barrel.

But not everyone has been making money. Bond investors were wondering what hit them as the price of long-term Treasuries dropped more than two and a half points in the two days after the rate cut.

The dollar also got worn out falling to a 15-year low against a basket of foreign currencies, an all-time low against the euro and in line with the value of the Canadian dollar, something that hasn't been seen for more than three decades.

For some time now the Money and Markets gurus have been explaining just how important the dollar's decline is. And there is yet another implication of a falling greenback.

The falling dollar makes U.S. assets cheaper for foreign investors.

Foreign investors recognize that a weaker currency means they can scoop up prime U.S. assets at fire sale prices. And that could be what they'll be doing over time.

Back in June, Sagami talked about China's deal to buy a $3-billion stake in private equity company Blackstone Group.

"China is laying the groundwork to go on a buying spree. Don't think for a minute that China bought into Blackstone because it hopes to make a big return on its investment. Rather, the Chinese government wants to learn the ins and outs of takeovers and private equity deals."

Like China, Middle Eastern countries are flush with cash right now. And they're more than happy to scoop up U.S. businesses on the cheap. The declining dollar, and the unfolding credit crunch, is only making the deals more attractive.

Just last week, two major deals went down. First, the Dubai stock exchange, agreed to buy a 19.9% share of the Nasdaq. Second, the government of Qatar's investment arm bought 20% of the London Stock Exchange and 9.9% of OMX, the Stockholm-based stock exchange.

And, thanks to the plunging greenback, all U.S. dollar-denominated assets are on sale for the rest of the world. So don't be surprised to see a repeat of the 1980s, when Japan scooped up some of the most treasured assets from the U.S. like Pebble Beach and Rockefeller Center.

As an investor, the trick is finding out what they'll be buying next.

"In the case of those Middle Eastern buyers, it's tough to say what U.S. asset will be targeted next. U.S. investors know that they're looking to diversify their economies away from oil. And the recent stock exchange purchases fit with their desire to establish themselves as financial centers.

China and other Asian countries will be looking for natural resources next. They need more of just about everything: oil, uranium, natural gas, copper, iron, potash, to feed expanding economies and exploding populations. So, investors won't go wrong by digging up attractively-valued companies in those industries," according to Sagami.

For more information and to read the full article, visit this link:

http://www.moneyandmarkets.com/press.asp?rls_id=958&cat_id=6&

About TONY SAGAMI & MONEY AND MARKETS

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Maryellen Murphy at 561-627-3300 or visit www.moneyandmarkets.com.

Tony Sagami

Tony Sagami, the owner and founder of Harvest Advisors, an investment research and money management company, has been managing money for more than 20 years and is one of the early pioneers in the application of technical and quantitative analysis to mutual funds and stocks.

Prior to establishing his own firm, Mr. Sagami was managing director at W.E. Donoghue & Co, serving additionally as the Director of Investment. During his successful career, he also held the position of account executive at Merrill Lynch.

Mr. Sagami has been frequently quoted as an expert and is appreciated for his frank, consumer-friendly views. He has appeared in publications such as The Wall Street Journal, Barron's, Kiplinger's, Smart Money, Business Week, New York Times, Washington Post, Investors Business Daily, Bloomberg, Financial Planning Times, Mutual Funds Magazine, Chicago Tribune, LA Times, and many others.

Mr. Sagami holds a degree in economics from the University of Washington.

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