Did you land on any ‘rules of thumb’ for how much you maintain in unhedged funds? I’m planning to be in the EU for two years and have been thinking about this - given purchasing power recently has decreased using dollars. I’m not sure that adding an unhedged buffer really “helps”, because it seems like I’d just be making an FX bet on when I enter into a position and when I re-fill it. But curious if anything stuck out to you in your planning that might be helpful.I'm a bit skeptical of unhedged international bonds yielding 2-3% as a long term investment with the exception of emerging market bonds, which have, at least historically, made a case for themselves. To do better than 2-3% in developed markets bonds means long-term dollar weakening, and no one knows if that will happen.
With that said, these have a niche place for a US investor who regularly travels/lives overseas. I'm such an investor, and I use a small portion of unhedged foreign bonds/foreign CDs to cover nearer-term foreign spending. While "volatile" from a USD perspective, they maintain a bit of purchasing power in a foreign currency. Longer term, though, global equities are the way.
Statistics: Posted by YoungSisyphus — Mon Sep 15, 2025 12:26 pm — Replies 10 — Views 607