perulv Posted March 18, 2020 Share Posted March 18, 2020 My local currency is NOK (Norway), and it is totally crushed lately (https://www.xe.com/currencycharts/?from=USD&to=NOK&view=1M). If I buy stocks in USD now and things become somewhat normalized, I might lose 20-30% in currency-fluxuations. I know that this is always the risk of buying in a foreign currency, but this situation seems extreme. I can buy by loaning in USD in my online brokerage account, but the interest is high (7%). This would cancel out the currency-risk, at a fixed price. Would you do this today? There are companies that are starting to look attractively priced, and my thinking is that some reversion to the mean is more likely than not. Or at least that a known 7% loss is the lesser of two evils right now. Last time I looked into it, I did not find better means of currency-hedging (for the small positions I take). (Edit: the flip-side is of course that my USD positions have been worth 30% more for the same reason.) Link to comment Share on other sites More sharing options...
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