Dumped Our Euro Position
I sold our holdings in FXE yesterday. I originally bought the shares to take advantage of the trend of the falling dollar. The short-term trend was broken yesterday and Friday so I sold the position for a small gain. The trend being broken wasn’t my only reason for selling though. For one, I don’t want to be a short-term, trend following trader. It doesn’t fit in with my new long-term investor approach. Also, I’m not sophisticated enough to pay attention and worry about what the dollar is doing. I have enough work to keep up with our finances and the stock market, I have no time, nor interest, in keeping close tabs on what the dollar is doing against foreign currencies.
I was happy to take a small gain out of the position. Now I just have to figure out what to do with the cash laying around in my IRA. In order to meet my target asset allocation I need to bump up two or three categories. It isn’t time to rebalance until next September, but I can use the cash available to me to come closer to my target. I’ll keep you informed.