Currency Risk Mitigation

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GreatX
GreatX

Co-Founder

Investors are constantly seeking ways to diversify their portfolios, but one risk that is often overlooked is currency risk. Currency risk arises from the change in price of one currency in relation to another. If the exchange rate between two currencies moves adversely, investors’ returns can be eroded, especially in cases where economies are experiencing high inflation. As seen in countries like Turkey, Greece and Venezuela, investments in local currencies can’t insulate their returns from local currency depreciation.  

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“If you don’t invest in risk management, it doesn’t matter what business you are in, it’s a risky business”

- Gary Cohn

One difficulty with investment in India is the volatility of the Indian rupee in the last decade due to economic reforms, international issues, and geopolitical conflicts. The Indian rupee has continued to depreciate against the US dollar for over 70 years.
Currency Risk Mitigation
Investing in US-domiciled assets has long proven to help individuals hedge against this currency risk. US notes have never been invalidated and have remained stable in times of regulatory uncertainty, making the dollar the target global currency. The dollar’s stability and global acceptance makes it an ideal currency for investing in long-term assets, providing investors a global economic risk mitigation strategy.
There are limited opportunities for foreign investors to own or manage assets in the United States, presenting barriers to accessing US domiciled investments. GreatX is giving individuals an opportunity to diversify currency risk out of their portfolios by providing returns in US dollars.

Disclaimer

This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.

Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. GreatX disclaims any obligation to update or revise any statements or views expressed herein.

In considering any performance information included in this commentary, it should be noted that past performance is not a guarantee of future results and there can be no assurance that future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which information, although believed to be accurate, has not been independently verified. GreatX and/or certain of its affiliates and/or clients hold and may, in the future, hold a financial interest in securities that are the same as or substantially similar to the securities discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and GreatX and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities. This commentary has not been reviewed or approved by any regulatory authority and has been prepared without regard to the individual financial circumstances or objectives of persons who may receive it. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

About the Author

GreatX
GreatX

Co-Founder

Lakshmi Narayanan, the co-founder at GreatX, is a passionate investor and serial entrepreneur who in a span of 15 years has revolutionized the way real estate and asset management works. Lakshmi has founded and led several successful organizations and brought innovation at its finest, paving way for visionary ideas and products.

About the Company

GreatX is a new-age wealth creation digital asset backed by the full faith and safety of U.S Treasury Bonds. These digital tokens are revolutionizing legacy products with modern instruments to open global avenues, especially for investors across the globe who are interested in investing in the U.S. GreatX enables global investors to own real estate in the U.S and earn guaranteed returns, assured security, and unmatched benefits. GreatX are smart securities democratizing wealth through decentralization and opening the gates of opportunity to a global audience.
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