I agree. I would not hold a huge portion in UDN. The dollar has been on a decline for a significant period. At some point it may turn around. That’s why it is a fraction (less than 5%) of my portfolio. The Euro-zone is at a different point in the business cycle. The US is in slow-down/recession mode well ahead of Europe. Consider what happens when the US is recovering from recession as Europe heads into one. What happens to the Dollar vs Euro when that happens ? US rates going up while Euro rates going down means a strong dollar vs Euro. It will happen again …
