Who’s Afraid of An Old-Fashioned Harvesting?

By March 22, 2007Currency ETFs

There are ways to pursue strategic profits by seeking higher yielding currencies while avoiding low-yielding ones. The Powershares DB G10 Currency Harvest Fund (DBV).

I have seen a number of folks denounce the strategy as a gimmick. That tag seems a bit misplaced, particularly when one looks at the historical success of the process.

In essence, DBV sells low-yielding currencies like the yen “short” and buys the high-yielding currencies like the Australian dollar. In 6 months, DBV has pocketed 8%. Considering the volatility of stocks over the recent month, an 8% 6-month return hardly seems like such a bad thing.

Disclosure statement: Some of Pacific Park’s investment clients may hold positions in any of the investments mentioned above.

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