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Question
What would happen to my dollar money in the event of a hyperinflation meltdown scenario, if it's in say a foreign etf?

Answer
Mark,
  Thank you for your question!
Unfortunately placing funds in an ETF that is focused on international holdings would not fully protect you if there is hyperinflation. There are several problems. First, ETF (exchange traded funds) are foreign companies that trade on US Exchanges, as well as their local international exchange. Because they have shares trading on US exchanges, it is not truly international investing, they are generally correlated somewhat to the moves of the US stock markets.
  Also your holdings would be in US dollars. So even if the dollar value of the ETF held up, the purchasing power of the dollars you had in the ETF would be completely subject to the high inflation. In that even if the ETF did not drop in absolute value, the purchasing power of the funds you had in the ETF would drop, and be fully subject to inflation.
   The idea of using ETF's is sound, but its not as simple as buying into a single ETF that focuses on foreign markets. Here is an article I found that makes some, in my opinion, good suggestions on ETF investments that could resist inflation a bit more than your standard investments:

http://commodityhq.com/2012/how-to-build-a-black-swan-hyperinflation-portfolio/

I hope that helps! Please reply if I can offer anything additional.

Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com

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Paul Henneman

Expertise

Stock forecasting and fair market valuations. I am happy to try to answer any questions for investors trying to manage their funds for the future. I will NOT ANSWER HOME WORK questions from students in finance or economics. Over half the questions I get are from students studying finance, located in India. Having someone on the internet answer your homework questions is not the way to build the knowledge you need for a career. All other questions are welcome and encouraged.

Experience

15 years in a leadership role at a Financial research company. Provide research to institutions on a high level such as Wells Fargo advisors, Fidelity, Bank of NY, Scotia Bank, Thomson Reuters, Bloomberg, McGraw Hill, and others.

Education/Credentials
Florida International University, University of Florida, over 20 years in the business.

Past/Present Clients
CBSMarketwatch.com, Hoovers.com, Multexinvestor.com, Bank of NY, numerous hedge funds and institutions, other partners and clients can be viewed at http://www.valuengine.com/about/careers.html

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