Tuesday, May 18, 2010

Yikes! Overbought much?

I have a small ADR position from a European exchange where I didn't hedge my Euro exposure, mostly because I needed to learn this lesson the hard way. The position was too small to hedge using futures, I had no access to borrow in EUR and I was being cheap about the tickets and the drag from shorting a Euro bond ETF given the steepness of the curve. Ouch! Lesson learned.

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Do the right thing.