You should have held currency ETFs

29 Jul

On May 3rd I wrote an article Currencies for profit without tears.  On June 2nd I suggested compiling a D-I-Y currency ETF containg FXF, FXE and FXS.  Two of those ETFs are losers since then but you would still have a 4.8% gain to compare to the S&P’s 1.57% loss in the same period.

I have updated our performance maps which include the SPDR Sector ETFs (nothing exciting there) and our currency ETFs (which you should review).

For the year the S&P is carrying a 2.75% gain.  EVERY currency ETF I track would have beaten the S&P with the exception of the $US.  Some by a lot.  Swiss Franck FXF +18.39%, Russian Rouble XRU +10.34% and the good old Euro FXE +7.55%.  And that’s only the capital gains.  These ETFs pay interest every month, check them out at Currency Shares.

It gets even better in July.  S&P? Minus 2.15%.  Swiss Franc FXF? Up 6.86%  Japanese Yen FXY? Up 4.59%.

Are you guaranteed a profit in currency ETFs?  Of course not.  But with a bit of judicious background reading you should be able to figure out how to profit from the hard work our “leaders” in Washington are doing in their seemingly never-ending quest to destroy the Dollar.

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