Consider the Currency Markets in 2009

Investors dissatisfied with the traditional equity markets might consider looking for opportunities in the currency markets in 2009.

Right now the U.S. dollar is taking a beating, and steps that the Federal Reserve and the U.S. Treasury are taking to stimulate the economy are not likely to stop the greenback's freefall any time soon. Through an online trading account, investors can access international currency markets and sell the U.S. dollar against any number of currencies that may enjoy a better outlook in 2009.

"What we are looking at right now is a shift in the dollar from strength into weakness and that provides some opportunities for the investor to take advantage of," says Brian Dolan, CEO of GAIN Capital Management and chief currency strategist for Forex.com.

In an interview with MainStreet.com, Dolan, who is also co-author of "Currency Trading for Dummies," explains what active traders should look for in order to benefit from currency exchange next year.

MainStreet: What do you see happening in the currency markets in 2009?

Brian Dolan: We look to go into 2009 with a weak dollar with potentially further declines coming. The key thing to watch is that we have a sentiment shift -- if the market believes that the fiscal stimulus and the debt issuance that the U.S. is going to do is ultimately going to be positive for the U.S. economy and bring us out of our recession sooner rather than later, then the dollar weakness represents a longer-term buying opportunity.