The U.S. Dollar is finally trading to the upside after hitting a 15 month low, as we've told our readers before the way to play the dollar momentum is using the PowerShares DB US Dollar Index Bearish (NYSE:UDN) and the PowerShares DB US Dollar Index Bullish (NYSE:UUP).
Everyone has an opinion on the value of the U.S. Dollar and where its headed. Right off the bat you can buy two ETFs that trade on the bullish and bearish movements of the dollar, those options are the PowerShares DB US Dollar Index Bearish (NYSE:UDN) and the PowerShares DB US Dollar Index Bullish (NYSE:UUP).
With the market treading water for the past week or two, and some negative economic news being released many are wondering if this is a start of at least a short term market downturn. The following 5 ETFs should help insulate your portfolio from market weakness without exposure to highly leveraged and poorly constructed 2x or 3x short ETFs including SPDR Gold Shares (NYSE:GLD) and PowerShares US Dollar Bullish (NYSE:UUP).
The U.S. Dollar is treading water today awaiting any news from the G-20 summit or the Fed. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is once again just pennies away from a new 52-week low which corresponds to the falling greenback's value.
All told, now seems a lousy time to hold savings in dollars, especially while interest rates on savings accounts are pitiful. Don't be too quick to count out the buck, though. Fundamentals suggest it's due for a lift and if that's the case, your weapon of choice is the PowerShares DB US Dollar Index Bullish Fund (NYSE:UUP).
Various talking heads are saying the U.S. Dollar has finally bottomed out, if that's the case then going long on the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is your play. The UUP is less than $1 away from its 52-week low and is trading today in the mid $23 range and for once, I tend to agree with the bullish call on the dollar.