The New Neutral: The Long-Term Case for Currency Hedging

摘要

In The New Neutral: The Long-Term Case for Currency Hedging, from the Summer 2018 issue of The Journal of Investing, authors Robert Bush and Abby Woodham (both of DWS in New York, NY) examine the role of currency risk in long-term asset allocation for international equities. They address the impact of currency exposure on overall portfolio risk and return, and recommend using a portfolio approach as a framework to understand the role of foreign currencies in strategic asset allocation. The authors argue that fully hedging currency risk should be the new neutral for making long-term asset allocation decisions.