Curreny Overlay Strategy
June 22, 2009
In today’s investment climate, asset managers have come to the realization that now, more than ever, geographic diversification is key. Gaining access and direct exposure to foreign equity and debt securities, however, comes with a complicating factor that requires analysis and attention when compared to domestic investment decisions – that factor is FX market risk. Read more
BRIC, The Dollar, and U. S. Monetary Policy
June 17, 2009
Over the past several months I have written regularly that the value of the United States dollar will decline over an extended period of time. The basic argument for this is that over the past forty years or so, any country that has run excessive governmental budget deficits and has not had an independent central bank has seen the value of its currency come under pressure in international financial markets. During this time, country after country has had to regain discipline over its fiscal affairs and see to it that its central bank acted more independently of the government’s budgetary affairs. Read more
