More on Currencies Impacting Portfolios

This article by Barbara Kollmeyer of MarketWatch (via link by Investor's Business Daily) echos CG's previously-stated attitude on hedging stock portfolios -- that it's not needed over the long term.

This gets to the heart of the matter:

"Does hedging pay? Studies have shown that over a decade or more, hedged positions offer no real advantage, but that's a divisive issue.

"'Over the long term, there's pretty good evidence that hedging doesn't make a big difference in a portfolio,' said Brad Sorenson, head of sector analysis at Charles Schwab & Co. 'It's a split camp, but studies that we've looked at over a 10 to 15 year period show the returns are roughly the same between 1980 and 1999.'"

Good stuff.