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FOREX STRATEGY

Using Currency ETNs to Hedge a Portfolio

Using, Currency, ETNs, Hedge, Portfolio, forex strategy, fx trader, forex, currency fluctuations

How may an investor take advantage of currency fluctuations without having to be a currency guru? The use of currency ETNs (exchange-traded notes) in a personal, well diversified portfolio can mitigate the risk when changes between currency pair valuations may work against it.       

It’s been widely reported that  the largest corporations in the US are holding upwards of $2tn overseas (Microsoft, Apple, Google, GE and Cisco Systems to name a few). All of the afore-mentioned are foundational investments in almost every portfolio, on every level. Politicians will argue that this is a ‘tax-dodge’ and it is to some degree, but the situation is far more complicated. Each of those companies invest, manufacture, employ, research and sell their products globally. In a relatively normal global economic environment, currency fluctuations will return to the mean within a reasonable period of time.

Using, Currency, ETNs, Hedge, Portfolio, forex strategy, fx trader, forex, currency fluctuations

 

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