The best currencies to invest in for 2013 come from Asia, South America, Australia - but not the United States.
The Federal Reserve's misguided insistence on a loose monetary policy, ongoing resistance to government spending cuts, and another increase in the U.S. debt ceiling will all conspire to boost inflationary pressures and restrain the value of the U.S. dollar.
That will, of course, impact domestic market performance and cut into real returns on dollar-denominated investments - but it will also provide major opportunities for U.S. investors who can target issues denominated in the strongest foreign currencies.
Unfortunately, that doesn't include most of the world's other major currencies - including the euro, British pound and Japanese yen - since the economies of the underlying nations are also suffering from sluggish economic recoveries and problems with excess debt.
As such, the strongest currencies in 2013 will likely be found to the north and west of the United States, starting with the neighboring Canadian dollar.
Four of the Best Currencies to Invest in for 2012
If you had to pick one word to describe the outlook for the world's major currencies heading into 2013, it would have to be "inconclusive."
Since late May, none of the leading currencies has managed to establish a prolonged trend, with choppy action being driven by continued economic instability in Europe, a sluggish recovery in the United States and slowing growth in the Far East.
Even the Japanese yen, which has been one of the strongest currencies the past few years and held fairly steady through most of the summer choppiness, has weakened in recent days in the wake of a slowing Japanese economy and falling export business, much of the latter blamed on the strong yen.
And the indications are the world's major currencies will likely stay that range bound for the remainder of 2012. Investors can expect price movements to be driven by short-term speculative reactions to each new economic report, unexpected developments in the U.S. election campaign and the continuing failure of European bailout proposals.
So, what's a currency-conscious investor to do?...
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