27
June
2011
The papers were again full of recommendations at the weekend for concerned Irish investors to buy currencies as a way of hedging against Euro risk.
We repeat that we believe this is a bad investment strategy since it requires an investor to guess which currencies will "win" against the Euro and avoid those currencies which will lose.
To test how difficult this might be, we examined the returns for a basket of 20 currencies against the Euro over the period Jan 1999 to May 2011. The winning currency? The Swiss Franc? The Canadian Dollar?
No, in this sample the winner was the Malaysian Ringgit!
Haven't seen much in the press recommending that over the last while...
Any portfolio constructed on the basis of speculation about the future based on current events has been shown time and time again to lead to bad investment outcomes.
Our solution for the concerned investor looking to reduce risk to their savings is our safety first portfolio.
http://wealth.goldcore.com/sites/default/files/blog_files/Safety%20First...
For more information about currency please Click on the image below for more information or see http://wealth.goldcore.com/resource/investing_currencies
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