Index funds in an ISA, a Gold ETF, a pension fund, bank account savings, if everything is denominated in your local currency (Sterling in my case), does that not have a big impact in real diversification?
There should be some hedging in the fact that a fund which holds shares of a company which is based on a valuation in USD, may react differently to the value of Sterling savings, in the event of major changes in the exchange rate of GBP vs USD. But is that hedging significant enough?
The brilliant Ray Dalio advocates diversification now more then anything else. But are people like me deluding themselves in thinking they’re diversified?
How can you own an index fun based on an Asian currency? Is Bitcoin the one true hedge?
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