The Traderszone Network

Published in TZ Latest News 14 May, 2014 by The TZ Newswire Staff

Myth: The Euro and Yen Make Good Diversifiers for U.S. Purchasing Power

When investors allocate to foreign stocks, they implicitly assume a secondary currency exposure on top of their local equity market returns. In discussing currency-hedged strategies with clients over the last few years, I’ve heard a few common explanations as to why investors like making this secondary “currency bet” on top of the global equity diversification they are obtaining.

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