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A basket of currencies and value stores seems like it would be the least volatile.
by cj 1y ago
A basket of currencies and value stores seems like it would be the least volatile.
- JumpCrisscross 1y ago> basket of currencies and value stores seems like it would be the least volatile For whom? The least volatile asset relative to dollars are dollars. The moment you start building a money-market fund you have novel risks, from credit to rates and FX. (And, in the extreme, legal.)
- cj 1y ago> For whom For people outside of the US.
- JumpCrisscross 1y ago> For people outside of the US They’re better off with their own currency or an international currency (currently, Euros or dollars). Almost never a basket. (The IMF has SDRs. And various trade-weighted baskets are constructed for metric purposes. They aren’t practical instruments.)