Sentences with phrase «because currency effects»

The verdict on currency - hedging then (based on an admittedly short history of just 6 years) is clear: Long - term investors are highly unlikely to profit from hedging their currency exposure because currency effects have to overcome significantly large tracking errors simply to break even.

If you had purchased TDB904 instead, you would have made 10 % because the currency effect would be hedged away.

Not exact matches

According to Thomas, exchanges dislike forks because it undercuts the network effects that increase the value of digital currencies like bitcoin.

In fact, currency markets now are helping the central bank in that regard, since a stronger currency essentially has the same effect on the economy as higher interest rates because it will reduce exports and corporate profits.

He said the latest and toughest sanctions resolutions against North Korea «are working, having an effect on the situation... on the capacity of the regime to obtain hard currency because to go along with the military programs or missile or nuclear (programs) you need money, and that's the objective.»

History has many examples of currencies that have failed and been relegated to the dustbin, usually because of run on their value in the other direction: down, with a devastating inflationary effect.

Because we hold significant assets and liabilities in currencies other than our Russian ruble operating currency, and because foreign exchange fluctuations are outside of our operational control, we believe that it is useful to present adjusted net income and related margin measures excluding these effects, in order to provide greater clarity regarding our operating perfoBecause we hold significant assets and liabilities in currencies other than our Russian ruble operating currency, and because foreign exchange fluctuations are outside of our operational control, we believe that it is useful to present adjusted net income and related margin measures excluding these effects, in order to provide greater clarity regarding our operating perfobecause foreign exchange fluctuations are outside of our operational control, we believe that it is useful to present adjusted net income and related margin measures excluding these effects, in order to provide greater clarity regarding our operating performance.

First, the networking effects — because oil is a relatively small contributor to our GDP and manufacturing is a relatively large contributor to our GDP, any damage done by currency effects driven by oil risks having an outsized effect on a much larger industry.

The indirect effects are larger, though, because the currencies of America's two largest export markets — Mexico and Canada — tend to weaken when the Chinese economy slows and pushes global commodity prices lower.

Actual results may differ materially from those expected because of various known and unknown risks and uncertainties, including, but not limited to, the continuing effects of the U.S. recession and global credit environment, other changes in general economic and industry conditions, the award or loss of significant client assignments, timing of contracts, recruiting and new business solicitation efforts, currency fluctuations, and other factors affecting the financial health of our clients.

With positive currency effects (as was the case with CAD / basket and EAFE index over 2006 to 2011), currency - hedged investors are trailing even more because investors did not get the currency boost and paid for their hedging efforts through tracking error.

In fact, currency markets now are helping the central bank in that regard, since a stronger currency essentially has the same effect on the economy as higher interest rates because it will reduce exports and corporate profits.

I personally prefer using unhedged positions because (a) It is cheaper (b) In the long run, currency effects will average out (c) The value of hedging is questionable when a basket of currencies are involved and (d) While currencies on their own have zero expected return over cash, adding them to a portfolio reduces volatility and offers diversification benefits.

Swan says that hedging the entire position generally protects U.S. investors from adverse currency effects because emerging markets and their currencies tend to rise and fall in tandem.

According to Thomas, exchanges dislike forks because it undercuts the network effects that increase the value of digital currencies like bitcoin.

Bitcoins network effect does affect all other cryptocurrencies because exchanges usually have the trading pairs to be set up against Bitcoin or a fiat currency.