Comments on: Currency Investing – Should You Buy A Currency ETF?

By: Weekend Linkage - August 10, 2008

Weekend Linkage - August 10, 2008 — Mon, 11 Aug 2008 03:41:22 +0000

[...] Currency Investing – Should You Buy A Currency ETF? Erik reasons of having foreign currencies in your investment portfolio. [...]

By: ToughMoneyLove

ToughMoneyLove — Sun, 10 Aug 2008 22:56:28 +0000

To take advantage of currency fluctuations (namely a falling dollar), you should consider instead a non-hedged foreign treasury bond fund as part of a comprehensive asset allocation.

By: Who Let The Dogs Out? Plus Debt Reduction Steps

Who Let The Dogs Out? Plus Debt Reduction Steps — Sun, 10 Aug 2008 16:44:27 +0000

[...] Smart Life reflects on the topic of currency ETFs. I’ve been mulling over the possibility of buying an ETF, but one that represents a global [...]

By: Sunday Money Madness | Rich Credit Debt Loan

Sunday Money Madness | Rich Credit Debt Loan — Sun, 10 Aug 2008 14:00:32 +0000

[...] Money Smart Life presents Currency Investing – Should You Buy A Currency ETF? [...]

By: market folly

market folly — Sat, 09 Aug 2008 22:14:13 +0000

i’m sorry to be blunt but recommending the euro is a horrible idea considering that trichet and the ecb have just changed their hawkish stance to a policy that is more concerned about slowing growth rather than inflation: ie they now most likely will cut rates just like the US has just finished doing….. hence the massive drop in the euro this past week.

By: Shadox

Shadox — Sat, 09 Aug 2008 07:58:08 +0000

I wouldn’t bet against the Dollar, for a couple of reasons. So far the current economic weakness has mostly centered on the U.S. – well, there are signs that it is exapnding globally. With that, many central banks are expected to lower interest rates, and this is expected to make the Dollar more attractive.

But that’s the macro economic answer. Here’s the real story: if you are earning in U.S. Dollars, and spending in U.S. Dollars, betting on foreign currency is nothing more than speculation. It is no different from betting on the stock market. If you are hedging a specific currency risk (for example – you plan an international trip and buy that country’s currency in advance to protect yourself against exchange rate fluctuations) that’s fine. Otherwise, forget about betting on exchange rates.

By: Jerry

Jerry — Sat, 09 Aug 2008 03:12:57 +0000

That market is a little too volatile for me at the moment (investments have no insurance, you know!), but it is very intriguing in concept and leads me to think about currencies often. We are about to move to Europe for a few years, and the dollar is taking it on the chin. I hope you are correct about it regaining some strength against the Euro! That would help our expenses a lot…
Jerry

By: Taddy

Taddy — Fri, 08 Aug 2008 13:47:14 +0000

Excellent content – as you always provide and inspires me to come again and again.