How the Euro Affects Your Investments

icon_fbAlan McKnight, the director of global investment strategy at Balentine, told Fox Business that taking on currency exposure adds the risk that movements in the currency can influence the overall value of the asset regardless of the underlying characteristics of the asset. To illustrate this point he offered an example: “An investment in a German stock that is held in euros would be hurt by a weakening euro regardless of the underlying fundamentals of the company,” such as cash flows and the balance sheet.

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