The world’s economies really seem to be at a crossroads and it’s anyone’s guess which way various currencies will swing. If trying to predict any one of those movements is too daunting, a diversified currency ETF, such as the PowerShares DB G10 Currency Harvest (DBV). The fund goes long on futures of three currencies with the highest interest rates and short on those with the lowest.
Whatever route you take, currencies work best in a well-diversified portfolio. Don’t put all your currency in one basket.
Read the disclosure, as Tom Lydon is a board member of Rydex Funds.