With the dollar falling, why not bet against it? Here's why

Updated

Retail investors would do well to avoid this trade: Betting against the U.S. dollar using one of the currency funds or ETFs that have sprung up to take advantage of our flaccid greenback.

No, it's not because the dollar is strong or even appears to have much upside anytime soon. As we have said before, as long as the Federal Reserve continues to print money through a zero-interest-rate policy, the U.S. keeps running a big trade deficit and other nations move their foreign-exchange reserves out of dollars, the buck has no place to go but down.

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