VEA - VEA: Strong Dollar Headwinds Set To Fade

• Strength in the U.S. dollar versus the Japanese yen and British pound has weighed heavily on international equity ETFs but there are signs that the dollar bull run maybe ending.
• The Vanguard FTSE Developed Markets ETF (VEA) offers cheap exposure to international stocks and is well diversified in terms of both geography and industrial sectors.
• While a bear market in U.S. stocks may continue to weigh on international stocks, the latter's cheaper valuations suggests that any such weakness should be bought.
• I am long the VEA as part of a strategy that includes short positions in U.S. stocks with the aim of taking advantage of the U.S.-international valuation spread regardless of whether the market rises or falls.

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