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  1. K

    How to invest during weak EUR, high inflation, and meek interest rate?

    @kcnalp They won't be able to hike as much as the US because there are many countries in the EU that wouldn't be able to service their debt anymore if they hiked too much. Also the fact the USD is so strong isn't only due to interest rates, it's also because it's seen as the world reserve...
  2. K

    How to invest during weak EUR, high inflation, and meek interest rate?

    @kcnalp If it's true for lump sum then how is that different for DCA. DCA is just a way to spread risk, not change your headwinds or tailwinds, those stay the same, just diluted over time. Even with DCA, if the dollar keeps strengthening, with a hedged ETF you are losing out on currency gains...
  3. K

    How to invest during weak EUR, high inflation, and meek interest rate?

    @kcnalp You aren't missing anything with the hedged ETF scenarios. If you buy a hedged ETF with underlying US assets, if the USD keeps appreciating you have outsized losses because you miss out on all the currency gains (and you add on top of that the hedging costs). If on the other hand the EUR...
  4. K

    How to invest during weak EUR, high inflation, and meek interest rate?

    @kcnalp If the Euro continues to fall, buying a Hedged ETF will do you nothing good. Hedged ETFs would be advantageous if the local currency appreciates compared to the currency of the ETF. If on the other hand the foreign currency continues to appreciate, the hedged ETF does nothing good and...
  5. K

    How to invest during weak EUR, high inflation, and meek interest rate?

    @kcnalp Option 1 doesn't seem that great, because EUR could continue to fall, along with the stock market too. There is a case for option 2, many people are saying that with bond valuations this low it's starting to become really attractive. The thing is at some point these rates will have to...
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