Friday, November 9, 2007

Protect your shares from $A dazzler - Business - Business - theage.com.au

The day we got done talking about hedging!

Protect your shares from $A dazzler - Business - Business - theage.com.au:
"Well, a rising Australian dollar will affect returns of international share
portfolios that don't have any protection (or hedging) against a fall in the US
dollar, which is occurring right now. (Hedging refers to the process of
protecting investments against, or reducing the risk of, a loss. A common type
of hedging is currency hedging. The value of overseas investments is affected by
rises or falls in the value of the Australian dollar. For example, if the
Australian dollar rises in value, then overseas investments will reduce in
value.)"

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