Depreciation: the two trillion dollar question

The questions can be dizzying. Will the US Federal Reserve raise or lower rates this year? If the US housing market continues to drop, will the Fed lower the cost of money? Before reaching any conclusions, let us say the slowdown scenario is viable and the central bank will cut rates. Among other things, borrowing costs across the board may decline and the dollar will weaken even more against major currencies, such as the euro and yen. If you have a portfolio that is mostly in dollar-denominated securities, the conventional wisdom on protecting against dollar depreciation is to buy euros,...