Ah......the US$.

[swissie]

Ah..... the US$.
US citizens investing in US Dollars must not read on. All others, not calling the US$ as "home currency" should read on.

No matter who wins in November, Democrats as well as Republicans have "economic growth" on their agenda. Sluggish domestic demand can only be offset by increasing Exports. Fastest way to do it: Make products cheaper by lowering the value of the currency. Therefore be prepared, that the positve yields that US equities offer today, will be greatly curtailed by a depreciating US$ versus your "home currency". Or even turn into "negative yields".

In the olden days, major currencies fluctuated maybe 5% per year against each other. Today this can happen within 2 months.

Due to this increased volatility, a "hedge" (insurance) against further US$ depreciation costs 5% per year. Crazy, but that says it all.

Don't say "nobody told me before" after the fact. Remember: You read it here first.