What the experts say

Beware currency speculating; A better way to judge funds; Taxes: Don’t withhold too much

Beware currency speculating

With the dollar weak and interest rates on savings accounts low, “even normally timid investors are hearing the siren song of foreign currencies,” said Jane Birnbaum in The New York Times. “The question is whether they should heed it.” Currency trading is, in some respects, easier than ever: Exchange-traded funds that track foreign currencies and foreign certificates of deposit are available online. Still, betting on the rise and fall of other currencies is “not for the faint of heart.” Unless you’re committed to closely following the markets—and have money to lose—stick with the more moderate approach: Invest in some foreign stocks or bonds, or American companies that derive profits from overseas. Think of it as a “long-term insurance to hedge a weak dollar.” Not as a way to get rich quick.

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