| With U.S. equities coming off a multi-year rally, more investors are starting to look to overseas markets as a way to diversify their investment portfolio. However, some are beginning to see specific risks in foreign equities exposure, notably foreign exchange currency risks.
In a recent research note, Dodd Kittsley, director and head of ETF strategy at Deutsche Asset & Wealth Management, tries to dispel a number of common misconceptions about the role of currency risk in a portfolio. For starters, Kittsley points out that while exchange rates return to equilibrium value over time – currencies don’t indefinitely appreciate or depreciate but rather go through cycles, exchange rates can still swing over short periods...............................................Full Article: Source
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