Better hedge for THB $ or €?

[THAIPHUKET]

I like US stocks because diversity & depth of info. Got hardly anything in THB . Long-term what is the better hedge USD or EUR?

[ldnguy]

No-one knows the answer to that. If they did, they'd be rich.

[SheungWan]

If you hold US stocks and your income is in $US then the question re cash is whether you should convert any of that cash into Euros. Yes?

If you held a bank account in Hong Kong it would be a simple matter to switch money beween the two currencies.

If your default position was 50:50, then now you might be inclined to make it say 75:25. All depends on why you would be doing this and anyway holding lots in cash doesn't get you much in returns.

[lannarebirth]

No-one knows the answer to that. If they did, they'd be rich.

Well, we certainly know the answer looking backwards. THB is more correlated to EUR with respect to USD. Therefore for hedging purposes the USD is better against THB. Better still if your income is spent or earned in $USD. Although your question seems kind of moot as you say you don't have any THB assets.

[THAIPHUKET]

Thank you all. My pension is in €, assets in $. I assume cost of living will go up much more here and pension income much less.

So far I avoided having meaningful THB assets. Right or wrongly.

[SheungWan]

Thank you all. My pension is in €, assets in $. I assume cost of living will go up much more here and pension income much less.

So far I avoided having meaningful THB assets. Right or wrongly.

Is there any $ income from the assets or is the current income only in euros?

If your cash is predominantly in euros then you might convert some to $US when the rate is favourable to you eg over 1.30.

When you need spending money you can then choose which currency to change to baht, but if we are only talking living expenses rather than standalone FX trading then the overall amounts converted to baht are not going to amount to megabucks on difference between the euro and the USD, unless you think one or the other is likely to do a slam dunk dive.