Currency ETFs: One Area Where There’s Always a Bull
February 23rd at 12:00pm by Tom Lydon
Investors who are on the hunt for bull markets might want to turn an eye toward currency exchange traded funds (ETFs).
After all, as one currency loses value, another one has to rise against it. Right now, the bull market is centered on the U.S. dollar, says Trang Ho for Investor’s Business Daily. There was a selloff in December, but ever since then, the dollar has been rising against most major currencies, leading the U.S. dollar index to jump 5.3% so far this year.
Keep in mind these points about currency trading.
The PowerShares U.S. Dollar Index Bullish (UUP) is the simplest way to track the movement of the dollar. The fund holds dollar futures contracts against the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, and the dollar has gained between 1.7% to 12.7% on the currencies so far this year.
