Profit from Yen, Euro Declines through Currency Hedged ETFs

The yen will weaken to 120 per dollar by the end of 2015 and this will spur Japanese stocks, said Dodd Kittsley, Americas Head of ETF National Accounts & Strategy for Deutsche Asset & Wealth Management. Kittsley forecasted the euro be close to parity with the U.S. dollar by the end of 2017 and this will spur the European economy by driving exports. He suggested investors utilize currency hedged ETFs to gain exposure to European and Japanese stocks because they turn the investment into a pure play, thereby reducing risk. Finally, Kittsley said the strengthening dollar will not hurt the U.S. economy by making U.S. exports too expensive.