Thursday, September 27, 2007

Why Currency Exposure Matters

Most investors don't think about currency when they are investing. I think that is a mistake. Today Bespoke provided a perfect example of why currency matters . . . .

If you own all domestic stocks and bonds and the dollar drops consistently against a basket of other currencies your real currency weighted return is actually much lower. Ignoring currencies is not a smart decision.

Posted by The La Jolla Guy at 9:33 AM

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