The recent large moves in the US dollar have brought the idea of currency hedging to investor attention. Currency hedging is often ignored when discussing international equity investments but this recent period of unusual currency moves (discussed in another insight) reminds us of the impact of currency risk.
Strategies
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In an environment where uncertainty is the only certainty, building resilient portfolios for a wide range of possible outcomes means diversifying differently with multi-asset strategies, real assets, and gold.
Currency risk can be material, and hedging decisions can make a real difference to return the outcomes. At a time when markets are witnessing sharp shifts in historic relationships, such as that between the US dollar and US equities in 2025 thus far, it is worth revisiting those decisions.
Scores generally provide a relative way to gauge a participant from amongst many, and therefore drive outcomes related to eligibility for one. Interactive Advisors (IA) uses risk scores to facilitate investment strategy matches between a client and a portfolio offering.
It is difficult to view political developments in an apolitical manner, but I’ve learned the hard way that one’s political opinions can all-too-easily cloud objective judgments about investing.
US debt levels have risen to concerning heights, prompting increased scrutiny from economists and policymakers. Although the United States continues to hold a high-quality debt rating, the growing debt burden may lead to higher risk premia, ultimately increasing the cost of borrowing.
The key to investing is persistence and patience. Markets follow the cumulative mechanism. Those who stay the course through both thick and thin and stick to the long-term goals will win.
In a dominantly consumerist world, it is easy to forget the fragile dependence of human life on nature and its bountiful offerings. At the heart of all food chains lies the basic premise of bio-diversity. That makes biodiversity a necessity, and not a luxury.
With the recent market volatility, indices have become a central feature of the daily news. But they are not just numbers that go up and down to reflect market movements.
Here's a quick guide to de-stress the process of investing, summarized in the 3S's that unravel the basics of not just investing beginnings, but just about any beginnings.
When central banks, hedge funds, retail investors, tech manufacturers and consumers in countries such as India are all buying the same thing—it's worth paying attention.
Geopolitical tensions, monetary policy shifts, and supply chain disruptions are creating challenges and opportunities for businesses in 2025. Corporates must navigate these complexities to manage global operations and capital flows effectively.