Input sought on risk diversification... I'm considering taking cash overseas (legally, fully declared) and park some in a bank account for liquidity but also buy an entry level low leverage property - you can get fixed 25 yr mortgages in Europe at 2-3 % as a non-resident at 70 % LTV. Good deal for the borrower.
Right now the value of the dollar is crushed thanks to the oil market implosion. In 3 - 5 - 7 years time it may be the reverse. Don't want to buy euros with a weak Cdn $ to see that change when I may need to return capital and end up selling cheap euros to buy expensive Cdn $ with oil at 160 $ per barrel (who knows). That could cost 30-40-50 %.
How do I (cheaply) hedge long-term currency risk on
a) liquid assets ie cash
b) RE
thanks everybody
Right now the value of the dollar is crushed thanks to the oil market implosion. In 3 - 5 - 7 years time it may be the reverse. Don't want to buy euros with a weak Cdn $ to see that change when I may need to return capital and end up selling cheap euros to buy expensive Cdn $ with oil at 160 $ per barrel (who knows). That could cost 30-40-50 %.
How do I (cheaply) hedge long-term currency risk on
a) liquid assets ie cash
b) RE
thanks everybody
