Michael Eisenberg

In Search of Healthy Currencies

Roger - Good one. I think another point everyone needs to think about is day to day exposure. My case is easy. I live in Israel. Hence I moved almost all of my dollars to shekels about 12 months both to avoid the weak currency and to put most of my eggs in the basket that I have most of my expenses. People living in the US though do not realize that given that many goods are imported, they effectively have currency exposure in their day to day lives as the dollar drops and imported goods become more expensive. It is worth thinking in terms of global currency hedging in terms of COL as well.

Finally, I think Israel has a lot of this correct and the Shekel feels like a good place to be vis a vis the euro and the dollar.