Category: Currencies

Does Currency Hedging Reduce Volatility?

“Currency adds volatility – and that can be costly.” – Sales Pitch One of the main selling points for hedging currency exposure in foreign equities is a reduction in volatility. The argument typically goes as follows: as a U.S. investor, why take on additional currency volatility if you don’t have to? Simply hedge the foreign […]

Is the Yen a Reliable Safe Haven?

After a perfect year in 2017 (S&P 500 up every single month), equity markets are struggling. The S&P 500 just finished down 2 months in a row (February, March) for the first time since early 2016. Meanwhile, the Japanese Yen is rising, leading all major currencies against the Dollar in 2018. Are these facts related? […]

The Evolution of Money

Does money have to be a government monopoly? Buyers of Bitcoin are screaming a collective “no,” as the price of the crypto-currency continues to hit record highs. A $10,000 investment in Bitcoin in July 2010 is worth over $162 million today. By comparison, over the same time period, a similar investment in Commodities (DBC) is […]

This webinar is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under […]

Crude Oil is at its highest level since last July. Meanwhile, the U.S. Dollar Index is not far from its lowest level since early 2015. Looking at the chart below, they seem to be polar opposites in recent years. The monthly correlation between Crude Oil and the Dollar Index (going back to 1983) is -.21, […]