how to hedge against the USD equity portfolio?

E

emk662

I am almost in SPY now. These past two weeks saw a steady decline of US dollar due to social unrest. I am worried that such decline is just the beginning. I like to hedge like these

1. using a basket of currencies. I don't know how to use dollar index as a tool
2. time frame is one year.

By the way, what will be the most stable currency in the next few years? I am not for an appreciation of one currency that is hard to predict, but for stableness.


Thanks for your reply.
 
emk662 said:
I am almost in SPY now. These past two weeks saw a steady decline of US dollar due to social unrest. I am worried that such decline is just the beginning. I like to hedge like these

1. using a basket of currencies. I don't know how to use dollar index as a tool
2. time frame is one year.

By the way, what will be the most stable currency in the next few years? I am not for an appreciation of one currency that is hard to predict, but for stableness.


Thanks for your reply.
More...
Ummmmm...... Gold? Gold ETF? $IAU? $GLD?
Maybe US Treasury Bonds, or ETF? $GOVT?
 
I don't trust gold. US treasury bond is essentially US dollar. I hope to hedge against a bunch of other currencies.
 
These past two weeks saw a steady decline of US dollar due to social unrest.
More...

Haha...had nothing to do with social unrest. Had everything to do with J-Powell's printing press and a lower appetite for safe haven assets.
 
ET180 said:
Haha...had nothing to do with social unrest. Had everything to do with J-Powell's printing press and a lower appetite for safe haven assets.
More...
...weaker dollar based on Uncle J's monetary policy, equities undervalued as a result of the CV plunge AND the additional currency added to the system.
 
Last edited:
emk662 said:
do you guys have idea how to hedge the usd?
More...

Depending on your market access, your account size, and how long you want to hold the hedge there are several options including UDN (ETF), spot forex positions, futures, and forwards. All of these have their own specific pro's and con's.
 
If you want to reliably hedge, you need to short the USD against your local currency via an instrument available to you, such as an option, CFD, future or forward. Trading another asset as a "hedge" against USD weakness isn't really a hedge, it's diversification.
 
You must log in or register to reply here.
Back
Top