AboutWarren Boroson Expertise Author of "Keys to Investing in Mutual Funds" (Barrons) and "Ultimate Mutual Fund Guide" (Probus). Columnist for Gannett News Service.
Experience Author of 20 books; winner of 1996 Personal Finance award from Investment Company Institute and Washington University. Formerly on staffs of Money and Sylvia Porter's Magazine. Had a radio program (on WEVD)about mutual funds and a newsletter, FundDigest.
Can you tell me how a long term investor should view and approach currency risk in general?
Thanks
Jim
Answer Hi Jim--
Jean-Marie Eveillard, who is one shrewd investor, suggests: ignore it. In the long run, things balance out. Currencies lose value, then gain value, ad infinitum.
But there are some well-run funds that do hedge. An example: Tweedy Browne Global.
So...maybe a long-term investor in mutual funds should leave the to-hedge-or-not decision to portfolio managers.
