Time to hedge one’s bets?

The Week Ahead

 

Time to hedge one’s bets?

Investors have ample reason to seek out international diversification. As we all learned in Finance 101, adding less systematically correlated assets to a portfolio is a risk mitigation strategy. But floating currencies represent a complication in that formula, particularly for a Canadian pension fund where the objective is to cover future obligations in Canadian dollars, or even for an individual who is saving for a retirement in Canada. 

Chief Economist, Avery Shenfeld, takes a deeper dive into hedging and the path for rates in the report below. 

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