We'll probably have several more pushes at US dollar strength; each of those periods is a buying opportunity for other non-US dollar assets.
I used to be more bullish on the Canadian dollar, but it's been weak ever since Carney (another Goldman Sachs executive) took control of our central bank. Ever since Carney got in, gold has been my best friend ... gold is strong against CAD.
Like most other things in investing, I think your best bet is to diversify. Here are some things I am diversifying my single currency holdings into:
Physical gold, of course (must be physical!)
Some commodity-related investments (don't go overboard)
Some major currencies that seem to not suck too badly: CAD, EUR, JPY, CHF, AUD
Others that are less liquid in North America but still good: Chinese yuan, Korean Won, Brazilian Real
I haven't even found a way to get my hands on those last currencies, which is why I listed them separately.
Another idea for getting this currency exposure in a nice secure way is to buy short term foreign government bonds, but there may be ugly fees or tax consequences. When in doubt, just load up on the paper currency.
- Perpetual Bull