I dropped out of my euro hedge, EUO, for $18.61, for a 2% gain. I could have been +10% if I hadn’t held onto it for so long, but that’s not necessarily the purpose of having a hedge.
The next leg of the euro crisis doesn’t appear imminent, and even though I’m not exactly cheery about the position the Europeans have put themselves in, our two economies appear to be leveling against one another.
I can’t say how long until the ECB will need to devalue the euro again. It’s coming; maybe a few years at most. But we could just as easily get hit here at home first.
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