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To some, the word “hedging” has a negative connotation, maybe because it brings to mind high-risk or complicated hedge fund strategies. But currency hedging is a straightforward management practice for reducing or eliminating foreign exchange (FX) currency risk, like an insurance policy a company can buy to protect its profits from FX movements. When a U.S. company commits to a future transaction where foreign currency is paid or received, that company runs the risk of losing money if the value of the currency changes before payment is made or received. Savvy chief [...]

Much has been discussed lately how close we may be to a recession. This week, one of the major signs of trouble according to precedent from previous economic crises came in the form of the inverted yield curve. Yield is usually the return that you hope an investment gives you in return for your risk-taking, but ultimately charts are showing that putting faith in bonds out in the long-term, say 10-year U.S. treasury bond, for example, does not pay you more than the short-term investment into a 2-year treasury bond. Ultimately, in [...]