Back in November I wrote a couple of posts on Euro and Swiss currency to hedge my investment portfolio. These positions weren’t huge but they were intended to hedge and possibly profit from volatility against a falling stock market and falling US Dollar.
So how are those positions doing now?
My Euro currency trade is up 9% and Swiss curency is up 9.9% as of the time of writing this post. Sadly, I had intended on accumulating more currency but I got busy with many things on my plate and never got around to it.
Normally, I would have built a $10k position but I will wait for any major pullbacks before I add more to the position.
Working As Intended
The S&P is down quite a bit from back in November and this hedge has worked as intended and I believe the US dollar still has room to fall especially if the Federal Reserve lowers rates however I think there may be an equal chance that the Federal Reserve ends up boosting rates due to supply chain disruptions because of the tariffs. If the latter happens, the US dollar will rally and foreign currencies will fall and that will be a good time to add to my position.
I am not overly concerned either way, I am earning dividends from these investments so money will flow in either way.
Share The Wealth
Are you investing in foreign currencies? Let me know in the comments below.