Re: Canadian Dollar
thats a great summary guys.
i opened this thread and was about to respond but said "screw it, i've responded to this exact question innumerable times."
and then you come in and summarize the situation very well.
the goal is simply to not have any significant currency exposure to speak of. developed world currencies indeed offer zero expected return, yet have a massive volatility. therefore, being exposed to their movements, while not getting compensated for it, is a major mistake in terms of your risk adjusted returns.
moving to daily life, the same logic applies.
you can execute these hedges in futures markets to a fair degree.
Barron
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