So let me ask you a question…since I really know nothing about this.

What do you think of the idea of basically buying a few foreign currency ETFs that generally move in opposition to one another? And then, as the prices for the ETFs move away from each another, you can simply rebalance them to get the portfolio back into the area you want. It would basically be the same thing as diversifying and rebalancing asset classes, but you would be using currency ETFs.

Since there is some volatility in this market, I think there is something to this strategy. It might be someplace to park some money as a hedge against many things. Also, by using ETFs, you don’t have to necessarily get into the FOREX (Foreign Exchange) market, per se. ETFs are a heck of a lot easier to trade and they act very similarly to stock trades.

Well, what do you think? Does anyone have any experience with this? Is it a logical idea now that we are hearing all sorts of news about a bond bubble?

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