Tweaking Currency Exposure
With the Greeks heading to the polls over the weekend and a fresh wave of anxiety about Spain's deteriorating economic fundamentals, it seems virtually certain the Europe will continue to steer markets in the week ahead. Depending on the approach taken toward austerity that emerges from elections in Greece, we could see some wild swings in the next few days.
For investors with meaningful exposure to international stocks, that could translate into even more significant losses. Though the U.S. currency has its fair share of challenges and downward pressures, those underlying fundamental issues take a back seat to the safe haven appeal in tumultuous environments. As Europe's woes continue to weigh on global equity markets, the dollar seems to be positioned to enjoy a period of relative strength. That could be bad news for U.S.-based investors who have meaningful allocations to the euro and other international currencies in their stock and bond portfolios. ...428 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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