Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
<If you have a margin account & effectively borrow against your <existing US holdings to buy Aussie or other non-US ADR's, you will be <benefitting from any fall in the US dollar - you are effectively <shorting the US dollart. The trick of course is coping with the margin <& choosinng the shares to buy using it.

I liked this idea as it seems like a natural hedge against currency rates. The only way I have found to do it is to go through an international broker like solomon smith barney. They will set me up with an US account and then I can margin lend(paying 8% to 9% interest) up to 50% on say a stock like cisco . Any ideas on how to get a lower interest rate or to get a higher level of gearing?

Paul.
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.