Forex is hot, your editor observes in the March issue of Wealth Manager, and for all the obvious reasons, starting with the fact that the formerly mighty dollar has come under the attack of the bears these past few years. No wonder, then, that a rising number of investment strategists in the U.S. see currencies generally as a separate and distinct asset class. It all looks good on paper, but does treating forex as one more choice in asset allocation plans stand up to reason in practice? Exploring the question is the subject du jour, and you can find a full serving here….
The research on forex diversification has always been there. It was one of the primary reasons as to why the European Central bank was created.
Listening to the currency logic by some of the founding ECB economists was mind blowingly simple, yet continues to be contradictory to “mainstream/ivy league” economics and the interest of their endowment funds.