Hedging Against Falling USD in a Stocks ISA?

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brettb

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I've been trading quite a lot of US stocks in my ISA. While my trading is profitable I'm being hit quite hard by the recent dollar weakness. My non-ISA account is using the same strategy with UK stocks only and it's been hitting new all time highs.

Is there anything I could do to hedge against a weaker dollar? Buy more stocks? Hold treasurys or inverse treasurys or something? Or just buy more US stocks when the pound is stronger?

I guess GBP is in a multiyear bear market against USD so maybe it won't matter in the longer term.
 
To hedge against a weaker dollar, you can consider diversifying with assets inversely correlated to the dollar, like commodities, or holding treasuries. Alternatively, buying more US stocks when GBP is stronger might offer opportunities, though the long-term trend is uncertain.
 
Gold can have a negative correlation to the US dollar, this often happens when the USD weakens, and the price of gold tends to rise. Conversely, when the value of the USD strengthens, the price of gold often falls. Maybe gold can be a hedge amidst the weakening US dollar
 
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