The LFB

King of Currency: The U.S. Dollar Hedge

The concept of a stronger dollar overall has limited appeal, but as an asset class there is no other currency that comes close to challenging the dollar dominance as the ultimate risk play. As a vehicle to hedge, it is unsurpassed in regard to value, leverage, and ease of purchase.

A Strong Dollar is another story all together, because once forward growth and interest rate variable get back into focus, the equity/risk percentage correlation will be reduced a little, ultimately increasing the cost of hedging any portfolio with a spot dollar trade, but leaving the hedging principle firmly in place.