By Bradley Krom
In 2018, emerging market ((EM)) equities ended the year down nearly 15%. Approximately one-third of that loss was attributable to broad-based dollar strength against most EM currencies. Heading into 2019, we question whether investors should remain agnostic to managing EM foreign exchange ((FX)) risk.
Thinking in Bets
Any time investors consider allocating internationally, they're making two decisions: views on asset returns and views on currency returns. The more understood (and fretted-over) decision is whether or not the foreign asset will go up or down. However, the second decision has unfortunately been on