ll11

BTON04 Wrote:
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> soddy1979 Wrote:
> --------------------------------------------------
> -----
> > All three can be used to hedge (albeit 1 & 2
> will
> > be less effective). High beta stocks and high
> > duration bonds will expose the investor to
> macro
> > economic factors in the local market.
>
>
> So you are long the USD, you want to have a trade
> that makes you neutral- you want to short the USD
> forward. # 1 and # 2 will get you further long
> the USD.

True, I was misinterpreting my notes here. 1 & 2 will allow you to increase the risk of a foreign investment without incurring additional currency risk (I think this assumes you have a position in the local market already)