In this week’s podcast we dicuss the important topic of currency hedging. This is not a topic we have explored previously, but it is one that is becoming increasingly critical for investors who own assets outside their home currency.
On the podcast this week we talk to Stuart Thomas, Founding Prinicpal at US fund manager Precidian Investments about the increased risks investors are facing from the forex market and why changes in foreign exchange are bringing unwanted volatility to equity portfolios.
We look into how investors can mitigate these currency risks at a practical level, including intraday traders, and how some investors are turning to ETFs to help reduce FX volatility. We also talk about some of the risks, and what can go wrong with these strategies.
Listen: Why currency hedging is important for small investors
Content
00:00 Intro to Precidian Investments
04:39 What is currency hedging?
07:57 What currency risks are investors exposed to?
10:33 How can traders reduce your currency risks?
13:14 Are there enough ETFs outside the USA?
14:51 Managing the costs and fees of currency hedging
16:53 Does currency hedging matter for intraday traders?
18:27 Does it matter to me?
20:00 ADRs vs. forex futures
23:08 What can go wrong?
Listen on:
- YouTube: https://www.youtube.com/@armchairtrader
- Spotify: https://open.spotify.com/show/2vfaIsY…
- Apple Podcasts: https://podcasts.apple.com/gb/podcast…
- Amazon: https://music.amazon.co.uk/podcasts/6…
- SoundCloud: https://soundcloud.com/armchairtrader
