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Strategies & Market Trends : 50% Gains Investing

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To: rllee who wrote (71496)1/21/2009 12:02:46 PM
From: Jurgis BekepurisRead Replies (1) of 118717
 
40GBP

I hope this is typo. ;) If we are talking about small sums of money, there is no point to hedge or split or whatever.

Personally, I would never chase currency speculations. If she has to work and live in UK and pay the prices there, speculating on US$ appreciating over GBP is a folly. Especially when GBP has already fallen. You are just momentum chasing and it never ends well.

In general, if a person have interests in two countries - like living in one and planning to return to another - it is a good idea to do some kind of portfolio balancing between the two. Like 50%/50% in both countries and both currencies. Or some other percentage breakdown. Then if percentages change due to currency fluctuations, it may be worthwhile to rebalance once a year or so. Still even with this, one has to keep in mind tax issues, which I am no expert in.

Good luck
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