Mark Phelps and Dev Chakrabarti
With the euro sliding deeper against the dollar this week, equity investors have been getting nervous. But why is everyone so surprised when known currency fluctuations derail earnings? In our view, a sharper focus on company exposures can help create a “natural” currency hedge in global equity portfolios. (more…)
Mexican equities have far outperformed Chinese equities over the past 20 years, although China’s economy has left Mexico’s in the dust. Why? China managed its currency tightly, Mexico did not. For more on the relationship between GDP growth and equities—and the investment implications—see my colleague Morgan Harting’s guest post on FT.com.
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