7Mes
You are quite heavily invested in US bonds. How do you deal with the currency risk? If the USD falls by 30%, that should break up your portfolio, right?
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7Mes
@Epi Give us the daily @Epi-Kritik today! :) I am keeping a close eye on the dollar. In the last few months, I have tended to see slight currency gains. Since it is foreseeable that interest rates in Europe will tend to fall, capital will tend to flow out of Europe and into the USA. I don't see why this should contribute to a fall in the dollar.
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7Mes
@kleberj It wasn't really meant as a criticism, but as a question. In principle, I would follow your reasoning, even if government debt and higher inflation are countervailing factors. But the markets often play their own game.
So I understand correctly, you don't have a currency hedging strategy? Have you ever considered hedging the risks with USDEUR puts?
So I understand correctly, you don't have a currency hedging strategy? Have you ever considered hedging the risks with USDEUR puts?
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7Mes
@Epi Nope, because, as I said, I don't see the risk at the moment. Then I don't need a return brake. I don't have cell phone insurance either.
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7Mes
@[kleberj](kleberj) If you don't see a risk, that doesn't mean it doesn't exist. 😉
Given the high weighting of the USA, currency fluctuations are likely to dominate the total return of the US share. In other words, with 50% of your portfolio you are essentially not speculating on interest rates, but on currencies.
Good luck!
Given the high weighting of the USA, currency fluctuations are likely to dominate the total return of the US share. In other words, with 50% of your portfolio you are essentially not speculating on interest rates, but on currencies.
Good luck!
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