Currency ETFs

I sold my currency ETFs, FXE (Euro) and FXY (Yen), today. I believe the bulk of the U.S. dollars decline is over and I want to raise some cash as we go into a historically strong season for the equity markets. When fashion models and rappers pick up on a trend I take it as a sign to get out.

As an investment, currency ETFs have two profiles. First, they hold cash and invest with banks for dividends based on foreign interest rates. Second, and most importantly, is the floating exchange rate as measured in U.S. dollars. The dollars decline has made foreign currencies more valuable; beats sitting in a U.S. money market.

Here's a short list of Currency ETFs, my favorites first…

FXE - CurrencyShares Euro Trust
FXY - CurrencyShares Japanese Yen Trust

and some others…

FXC - CurrencyShares Canadian Dollar Trust
FXA - CurrencyShares Australian Dollar Trust
FXB - CurrencyShares British Pound Trust