What to do with $50,000 now

The mammoth federal deficit - $1.6 trillion and growing -- is making plenty of people nervous about the strength of the dollar. Protect yourself against a falling greenback and earn a decent yield to boot by stashing, say, $50,000 of your bond portfolio in foreign fixed-income funds denominated in local currencies. A good strategy: Put about two-thirds of the money into a fund that invests mostly in bonds of developed nations, such as T. Rowe Price International Bond. Put the rest into a riskier emerging-market bond fund, such as the new Pimco Emerging Local Bond Class D.
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