How Long Will It Last?
That’s the $64,000 question, but key indicators tell us the trend is here to stay awhile. A key driver is the improving U.S. economy, with its strengthening monetary policy, better jobs numbers and surging domestic oil production, all of which support a stronger U.S. dollar. We’re seeing easing in the EU and Japan, which is impacting overseas currencies. My colleagues and I believe that we will continue this dollar strengthening phase, as historically we’ve seen such cycles last roughly six to eight years.
Considerations for Currency Hedged Investments
Don’t let the term “currency hedged” scare you. Think of it as a way to insulate your portfolio against currency fluctuation as part of your long-term strategy, there are several iShares ETFs you may want to consider. For example, the iShares Currency Hedged MSCI Japan ETF (NYSEARCA:HEWJ) and the iShares Currency Hedged MSCI EAFE ETF (NYSEARCA:HEFA).
How do you plan to take advantage of a stronger U.S. dollar? Share your stories here.
1 Source: Bloomberg