TIME Currency

This Experiment Shows Why You Should Take Bitcoin Seriously

Newest Innovations In Consumer Technology On Display At 2015 International CES
Ethan Miller—Getty Images A general view of the Bitcoin booth at the 2015 International CES at the Las Vegas Convention Center on January 8, 2015 in Las Vegas, Nevada.

NASDAQ is using a key bitcoin technology

The technology that powers the cryptocurrency bitcoin could soon become much more important to the global financial system.

NASDAQ is planning to pilot a new transaction-tracking system on one of its smaller markets that makes use of blockchain technology, a key component in the bitcoin system. A blockchain is a public ledger that keeps track of transactions within a digital currency by logging them across various computers. The computers work in tandem to ensure the authenticity of a transaction. This automated process allows for transactions to be decentralized from a central bank or money issuer, which speeds up the rate at which a buy or sell can occur.

Instead of using bitcoin, NASDAQ will apply this technology to securities bought and sold on a market for private companies. Shares in these companies are often bought and sold using a slow, informal system in which lawyers must manually verify transactions, according to the Wall Street Journal. The blockchain could significantly increase the pace at which trades can be executed.

NASDAQ calls the plan to use blockchain technology an “enterprise-wide initiative.” The financial sector has expressed a keen interest in bitcoin and its tech. The New York Stock Exchange and Goldman Sachs, among others, have already invested in bitcoin-related companies. Even if bitcoin fails as a currency, many observers have said the blockchain technology behind it could have promising use cases in finance and other fields.

MONEY currencies

Why the Strong Dollar Hurts Investors and What They Should Do About it

Johnson & Johnson products
John Raoux—AP Johnson & Johnson products

The strong dollar is hurting some multi-national corporations. That doesn't mean you should do anything.

Johnson & Johnson endured a difficult first quarter. Profits at the healthcare behemoth declined by almost 9%, and the company lowered earnings projections for the rest of the year.

Part of the blame went to poor sales of a particular hepatitis drug. But J&J also took a hit from something that its executives can’t in any way control: foreign exchange.

Over the past 12 months, the U.S. dollar has gained against every major currency, according to data from Bloomberg, including more than 20% against the euro.

That can be pleasant for American consumers and travelers, whose dollars can suddenly buy more imported goods and stretch further when spent abroad in places like Europe.

But a strong dollar can also have negative consequences, and the losers include multinational American companies like J&J that sell goods overseas, where American exports are suddenly more expensive than before and thus less competitive. Indeed, currency fluctuations sliced the company’s earnings by 7.2%.

What’s more, there’s reason to believe this kind of impact will be felt across the U.S. economy. The International Monetary Fund recently projected that currency effects would decrease U.S. economic growth this year by half a percentage point, to 3.1%.

In light of all this, investors may be wondering if they should make some changes to their domestic stock portfolio, perhaps lightening up on companies with lots of international business. Here are two reasons to hold off.

The Strong Dollar Is Already Baked Into Stock Prices

Intelligent folks can disagree on the efficient markets hypothesis, which holds that share prices always reflect all relevant information. But at least some of today’s currency issues are already cooked into company stock prices.

In other words, it’s probably too late to avoid the negative currency effects—and selling now might mean missing out when the currency pendulum swings the other way. You can see that in Johnson & Johnson: While the company’s numbers look bad on paper, they actually outperformed analysts’ expectations. The company’s stock was unchanged yesterday, and is actually up a bit over the past month.

That’s also true of the broader U.S. stock market: The S&P 500, which collectively takes in about half of its revenue from overseas, is up almost 2% so far this year.

Moreover, Europe won’t stay on its current economic path forever. Eventually the economies of its member nations will improve, the European Central Bank will stop buying bonds, and interest rates will one day rise. When that happens, demand for euros will increase.

The Dollar Won’t Stay Strong Forever

One reason the greenback has performed so well against other currencies is that our monetary policy looks downright hawkish by comparison. The Bank of Japan and the European Central Bank are holding down interest rates and buying up bonds in an effort to lower interest rates, stimulate spending, and improve economic growth. If that plan sounds familiar, that’s because the U.S. Federal Reserve spent years doing the same thing. These days the conventional wisdom is that the Fed will start to raise rates this summer or fall, thereby making dollars more desirable.

But the conventional wisdom isn’t always right—and in fact economic data over the past couple of weeks has revealed some weakness in the U.S. Last month’s jobs report showed employers adding fewer workers than expected, while retail sales underperformed as well. And while a plurality of economists polled by Bloomberg couple of weeks ago estimated that the Fed would raise interest rates in June, the most recent poll shows that a majority now think that increase won’t be announced until September. As a result, the dollar has actually underperformed the yen, euro and pound over the past month.

Which all means that you can be made to look silly by trying to time the market.

“From the prospective of individual investors with an intermediate to long-term time horizon, you shouldn’t be focused on the dollar,” says John Toohey, head of equities at USAA Investments. “It all tends to even out over time.”

TIME Economics

The Real Reason the Dollar Is So Strong Right Now

72967148
Purestock—Getty Images/Purestock Close-up of American dollar bills

And why it could seriously hurt American business

When is a stronger U.S. dollar not a good thing? When it causes companies to sell fewer products overseas. That’s one of the big concerns at the moment among American CEOs, many of whom are worried about what the dollar’s strength against currencies like the euro and the yen mean for US exports–and corporate profits.

They have legitimate reason to worry. Each of the five major dips in U.S. corporate profitability since 1970 have occurred following reduced sales after periods of relative dollar strength. The Fed has recently expressed concerns about whether the dollar’s strength could hold back the US recovery, which has been lackluster to begin with. Wages are still growing at only around 2 %, not enough to push up consumer spending, which is the major driver of our economy. If US exports also begin to suffer, it could be difficult for the economy to sustain the 3% a year growth figure that is needed to create more jobs.

Some economists believe the dollar’s strength reflects the fact that the U.S. is still the prettiest house on the ugly block that is the global economy. (Certainly, to employ another metaphor, it’s the strongest leg on the global stool with China slowing sharply and the Eurozone debt crisis flaring back up as Greece looks likely to run out of money next month.) But I think it’s more about central bankers and their actions. The dollar’s strength reflects the Fed’s own recent indications that it will likely raise interest rates by the end of the year.

Indeed, the dollar’s strength almost perfectly tracks Fed statements about the coming end of easy money. The tightening of US monetary policy (or even the hint that policy will tighten at some point) has driven the dollar up (and oil down) even as Europe’s beginning of its own “QE” or quantitative easing program has driven the Euro down. None of it reflects the economic reality on the ground, but rather the fact that central bankers are, as investment guru Mohamed El-Erian frequently says, the “only game in town.” For more on what the stronger dollar might mean for consumers, companies and the economy as a whole, you can listen to Josh Barro from the New York Times and I discuss the topic on this week’s Money Talking.

MONEY Travel

3 Reasons You Should Be Planning a Trip to Europe Right Now

Calle Barrera, Coruña city, Galicia, Spain
Lucas Vallecillos—age fotostock Calle Barrera, Coruña city, Galicia, Spain

A strong dollar abroad and expensive hotel rates at home are key reasons why you should be considering the grand European vacation this summer.

What a wonderful dilemma to have. The cheap price of gas helps make the financial argument for an all-American road trip this summer. And yet, the surging dollar and other factors listed below reveal that a peak-season vacation in Europe will be less expensive than it has been in years.

Is this the summer for you to see Europe? Here are three reasons why it should be—and why you should be booking the trip asap.

1. It’s actually possible to snag an affordable flight. The emergence of WOW Air and Norwegian Air, upstart low-fare airlines based in Iceland and (duh) Norway, respectively, has made a summertime trip to Europe more affordable for the masses. These airlines are known for advertising incredibly inexpensive fares—sometimes less than $100 each way across the Atlantic—and while you won’t find flights at such prices in the summer, the peak season airfares that are available are dirt cheap compared with mainstream carriers.

A few recent fare searches revealed that, for example, WOW Air flights from Washington, D.C., to Copenhagen in August were available one way for under $200, with all mandatory taxes and fees included. WOW Air flights from Boston to Reykjavik in early July were available starting at just $155. Meanwhile, we also spotted a round trip from Los Angeles to Copenhagen on Norwegian Air for a total of $825 in August, which is easily $200 cheaper than what other European carriers were charging for the same dates.

Not long ago, travelers assumed a summertime flight to Europe would cost at least $1,000, and probably a whole lot more. So the rock-bottom fares from these airlines certainly appear to be game changers. Still, before booking a flight with these or other airlines, check the fine print—with special attention paid to fees for baggage, seat selection, and such. Low-fare airlines like WOW, Norwegian, Spirit, and Ryanair are especially prone to charging for services that competitors provide for free. Factor all of this in when making decisions.

The dollar goes a long way in Europe. Back in January, we took note of how the euro fell to its lowest level against the dollar in nine years. At that point, one euro was equal to $1.19 in American currency. A look at the online XE Currency Converter shows that the dollar has only grown stronger of late, with one euro worth about $1.08. Hotel prices throughout Europe are down significantly compared with last year for American travelers, thanks to currency fluctuations among other factors. For that matter, virtually every on-the-ground expense—restaurants, wine, tours, souvenirs—in much of Europe will be substantially cheaper for Americans. Train tickets and flights purchased overseas should be less expensive too.

As the Los Angeles Times put it, compared to last summer, when one euro was equal to $1.37:

An American tourist strolling the streets of Paris this April can buy 25% more croissants, cafe au laits or mini Eiffel towers than a year ago with the same dollars.

Hotel rates in the U.S. are soaring. While travel expenses overseas have gotten more affordable for Americans, the reverse is true within our own borders. A Hotels.com study shows that the average hotel room in the U.S. sold for $137 in 2014, a 5% increase over 2013. American hotel rates are expected to rise another 5% to 6% this year.

Recent TripAdvisor data, on the other hand, shows that hotel rates in Europe are on the decline: Rooms booked on the site for the summer of 2015 are averaging $133, compared with $164 for last summer. According to TripAdvisor’s TripIndex, which factors in hotel and transportation costs, the price of a one-week vacation has dropped this year by 11% in 24 out of 25 European cities, when compared with the summer of 2014.

Point being, Europe is especially a bargain when you consider how pricey it’s gotten to vacation close to home.

TIME Money

See the Most Beautifully Designed Currencies From Around the World

From Costa Rica to Nepal, here is a selection of the most stunning bank notes in circulation

TIME politics

Exclusive: Read a 9-Year-Old’s Letter to Obama About Putting a Woman on U.S. Currency — and His Response

Image courtesy of Kim B., Sofia's mother Sofia, the girl who wrote to Obama asking him to put a woman on U.S. currency

"Why don’t women have coins or dollar bills with their faces on it?"

The little girl who asked Obama last year why there aren’t any women on U.S. bills has finally gotten a letter back from the President — and she’s invited to the annual White House Easter Egg Roll.

President Obama made waves last year when he mentioned he had received a letter from a little girl asking him to put some women on U.S. currency, which he called a “pretty good idea.” That letter was from Sofia, a Massachusetts girl who was just finishing third grade at the time.

“I was studying Ann Hutchinson, who stood up for women’s rights,” she says. “Almost everyone who chose a boy, on their poster they had pictures of different dollar bills or coins with their person on it. So I noticed, why don’t women have coins or dollar bills with their faces on it?”

Sofia, now 9, knew immediately what she had to do. “I just came home from school and said, ‘I need to write to the president.’” Sofia’s mother provided her letter exclusively to TIME:

Kim B. (Sofia's mother)
Image courtesy of Kim B., Sofia’s mother

For a while, Sofia didn’t hear anything back from the President. She says she “sort of forgot about it” until her dad showed her the President had mentioned her letter in a speech. “I was really excited about it, because I thought that maybe it would actually happen,” she says.

In the months since Sofia wrote to Obama, a campaign to put a woman on the $20 bill has gone viral. The W20 movement is hosting an online poll so the public can vote on which woman should replace Andrew Jackson. The group plans to petition Obama and the Treasury Secretary to make it happen. Almost 220,000 people have voted in the online poll so far. And Sofia, who is now in fourth grade, is a junior ambassador for the campaign.

MORE 10 Countries That Put Women on Cash Before the U.S.

Even though she’s a longtime fan of Ann Hutchinson, Sofia wants to see Rosa Parks on the $20. “What she did was really important,” she says. “If it wasn’t for her, we’d still be segregated today.” She got her whole class to vote in the online poll, and her third grade teacher got her class to vote as well.

Last month, Sofia finally got a personalized letter back from the President, along with an invitation to attend this year’s White House Easter Egg Roll. Here’s what President Obama wrote to her:

Unknown-1
Image courtesy of Kim B., Sofia’s mother

“The women you listed and drew make up an impressive group,” Obama wrote. “And I must say you’re pretty impressive, too.”

“I’ll keep working to make sure you grow up in a country where women have the same opportunities as men, and I hope you’ll stay involved in issues that matter to you,” he continued. “If you keep focusing in school and trying to help others whenever you can, there are no limits to what you can accomplish.”

Sofia wants to be a teacher or a scientist when she grows up — after a younger friend was diagnosed with cancer, she decided she wants to study cures. But she also has some advice for other kids her age who want to make a difference. “Write a letter to somebody important,” she says, “because something could happen and it could actually change.”

Read next: The Campaign to Get a Woman on the $20 Bill Is Picking Up Steam

MONEY women

10 Countries That Put Women on Cash Before the U.S.

The U.S. lags far behind several other nations when it comes to recognizing female leaders on paper currency.

As a campaign to get a woman on the $20 bill picks up steam, you might be surprised to learn just how far behind the times the United States is compared with other countries.

At least 10 other nations have already recognized female leaders on their banknotes, including Syria, the Philippines, and Israel.

Click through the gallery below to see which countries made the list. Then take MONEY’s poll to vote on the woman you’d most like to see on American currency. If you need inspiration, check out WomenOn20s official site to learn more about candidates like Susan B. Anthony, Betty Friedan, Shirley Chisholm, and Sojourner Truth.

Read next: VOTE: Who Should Be the First Woman on a Modern Dollar Bill?

  • Syria

    Queen Zenobia
    Khaled Al-Hariri—Reuters/Corbis

    Syria’s current image is that of a nation wracked by civil war and struggling against the violent militant group ISIS. But it outpaced the United States on one sign of social progress: recognizing women on official currency.

    Syrian Queen Zenobia, known for fighting back against Roman colonizers in the second century AD, appears on the 500-pound note.

     

  • Philippines

    Philipine 500 and 1000 peso notes
    Edwin Tuyay—Bloomberg via Getty Images

    During the mid-1980s, the Philippines introduced a 500-peso note featuring prominent senator Benigno Aquino Jr., who had been assassinated in 1983. His wife, Corazon Aquino, went on to become the first female president of the Philippines—and the first female president in Asia, for that matter—and her image was added to the bill after she died in 2009. Early 20th-century suffragette Josefa Llanes Escoda also appears (alongside two men) on the 1000-peso note.

  • Turkey

    Nick Fielding—Alamy

    In Turkey, the current 50-lira note features turn-of-the-century novelist and women’s rights activist Fatma Aliye Topuz on its reverse side. (The first president of Turkey, Mustafa Kemal Atatürk, appears on the front of every bill.)

  • Mexico

    500 Mexican pesos notes on a table with traditional Mexican ornament. The note has the portrait of the painter Diego Riviera on one side and Frida Kahlo on the other.
    Daniel Sambraus—Getty Images

    Mexico’s 500-peso note shows muralist Diego Rivera on the front and his wife and fellow artist Frida Kahlo on the back. Her image is a 1940 self-portrait, alongside a famous painting of hers from 1949, “Love’s Embrace of the Universe, the Earth (Mexico), Myself, Diego and Señor Xólotl.” Seventeenth-century Mexican writer Sor Juana Inés de la Cruz appears on the 200-peso note.

  • Argentina

    Eva Peron (1919-1952) on 2 Pesos 2001 Banknote from Argentina. Second wife of President Juan Peron.
    Georgios Kollidas—Alamy

    Argentina’s beloved former First Lady Eva Perón—widely known by her nickname “Evita”—appears on the current 100-peso bill. The 20-peso note depicts 19th-century Argentine political activist Manuela Rosas along with her father, politician Juan Manuel de Rosas.

  • New Zealand

    New Zealand 10 Ten Dollar Bank Note
    Glyn Thomas—Alamy

    Like many other former British colonies, New Zealand features Queen Elizabeth II on its currency—the 20-dollar note to be precise. But Kiwi banknotes also honor suffragette Kate Sheppard, who in 1893 helped New Zealand become the first country in the world with universal voting rights for both men and women. Her image appears on the 10-dollar bill.

  • Israel

    Wikimedia Commons A portrait of Israeli poet Rachel Bluwstein, who lived from 1890 to 1931.

    The Bank of Israel recently announced that it will be adding images of two female Israeli writers to forthcoming 20- and 100-New Shekel banknotes, respectively. The former will feature turn-of-the-century poet Rachel Bluwstein, and the latter author, poet, and literary expert Leah Goldberg, who died in 1970.

  • Sweden

    Artwork showing the designs of new folding Swedish krona, or kronor, currency notes due to be issued in 2014 stands on display at the Riksbank in Stockholm, Sweden, on Tuesday, Jan. 22, 2013.
    Bloomberg via Getty Images—Bloomberg via Getty Images

    Imagery on the krona celebrates several women in Sweden’s history. Currently there’s Selma Lagerlöf—the first woman to win the Nobel Prize in Literature—on the 20-krona note, as well as 19th-century opera singer Jenny Lind on the 50-krona bill. Starting this fall, a new line of banknotes will feature Pippi Longstocking author Astrid Lindgren on the 20-krona, 20th-century soprano Birgit Nilsson on the 500-krona, and classic film actress Greta Garbo on the 100-krona note.

  • Australia

    An Australian one-hundred dollar banknote
    Carla Gottgens—Bloomberg via Getty Images Dame Nellie Melba on the Australian 100-dollar banknote

    Australia has one woman on either the front or back of every banknote currently in circulation. They include Queen Elizabeth II on the front of the $5 bill, social reformer and writer Dame Mary Gilmore on the back of the $10, 19th-century businesswoman Mary Reibey on the front of the $20, politician and social worker Edith Cowan on the back of the $50, and turn-of-the-century soprano Dame Nellie Melba on the front of the $100 note.

  • England

    Jane Austen to feature on banknote. Mark Carney, the Governor of the Bank of England, with the ten pound note featuring Jane Austen at the Jane Austen House Museum in Chawton, near Alton. The Austen note will be issued within a year of the Churchill £5 note, which is targeted for issue during 2016.
    Chris Ratcliffe—PA Wire/Press Association Images The new Jane Austen £10 note will look like this.

    If featuring women on currency were a contest, the Bank of England would win, with every note since 1960 depicting Queen Elizabeth II on the front. Past bills featured nurse and statistician Florence Nightingale on the back, current 5-pound notes show 19th-century social reformer Elizabeth Fry, and the next 10-pound bill will celebrate famed 19th-century author Jane Austen.

TIME feminism

The Campaign to Get a Woman on the $20 Bill Is Picking Up Steam

W20 Elizabeth Cady Stanton on the $20

Andrew Jackson better watch his back

Andrew Jackson has been sitting pretty on the $20 bill for 87 years—and one group thinks it’s time he gave his spot to a woman.

W20’s campaign to get a woman on the $20 is picking up some serious internet traction.”I knew this would take off, but I didn’t know it would take off this fast,” says Susan Ades Stone, a journalist and editor who helped organize the campaign. “The response has been overwhelmingly enthusiastic.”

More than 72,000 people have voted in the online poll of 15 potential replacements for Jackson, including Susan B. Anthony, Betty Friedan, Shirley Chisholm, and Sojourner Truth (the full list is available here.) Ades says the competition has narrowed to a “very close race” but won’t say who’s in the lead.

On Wednesday, the New York Times published multiple pieces from different prominent women about who they’d like to see on the $20 bill. Gloria Steinem argued for Sojourner Truth, while Roxane Gay argued for Margaret Sanger.

“We stuck very closely to this rubric of evaluating every candidate by the breadth of their impact: how transformational was their contribution?” Ades explained. “And the other factor we asked people to consider were ‘what were the challenges these people faced?’”

The idea of getting a woman on the $20 started when Ades’ fellow organizer Barbara Ortiz Howard realized one day that her daughter had no everyday reminders of famous women in history. “Part of the mission, besides getting a woman on the $20 bill, is to educate as many people as possible about as many women as possible,” Ades says. “We want to see how many people we can reach.”

More: If Women Had Their Own Currency, Here’s What It Would Be Worth

While most people love the idea, the reaction hasn’t been universally positive. Some internet commenters argue that, because of Jackson’s abysmal treatment of Native Americans during his presidency, a Native American should replace him on the $20 bill. Ades said that female Cherokee chief Wilma Mankiller was in the original pool of 30 candidates, but when the ballot was narrowed to 15 candidates, she did not make the cut. Still, Ades says, “we’re listening,” and on Wednesday morning the group announced that Mankiller would be on the final ballot of four candidates.

Ultimately, the decision about whether to replace Andrew Jackson on the $20 bill is up to the Treasury Secretary, but Secretary Lew is unlikely to make a change without the President’s approval. But there’s hope: last year, when a little girl asked Obama why there weren’t any women on U.S. currency and provided a list of good candidates, he said adding a woman was a “pretty good idea.”

“We wanted this to be a grassroots movement, we wanted it to come from the people, and we wanted this to be a referendum,” Ades says. “It’s up to the President to decide what to do.”

TIME Innovation

Five Best Ideas of the Day: March 16

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

1. There are no winners in a currency war, either. Here’s why the U.S. is carrying the burden of the global recovery.

By Mark Gilbert in Bloomberg News

2. Despite slow and censored Internet and the weakest mobile phone penetration in Latin America, Cuba is the land of opportunity for daring tech investors.

By Ramphis Castro in Re/code

3. Anyone with a smartphone can become a mobile environmental monitoring station.

By Brian Handwerk in Smithsonian Magazine

4. Permanent, easily accessible criminal records are holding back too many Americans. It’s time to “ban the box.”

By Ruth Graham in the Boston Globe

5. Autism Village is an app that helps families find autism-friendly businesses.

By Olga Khazan in The Atlantic

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

TIME Ideas hosts the world's leading voices, providing commentary and expertise on the most compelling events in news, society, and culture. We welcome outside contributions. To submit a piece, email ideas@time.com.

MONEY Currency

How the Cheap Euro Is Hurting Your Investments

150312_INV_WeakEuroInvest
Dieter Spannknebel—Getty Images

The plunging euro may be good for U.S. consumers. But it has all but wiped out returns of foreign stock mutual funds.

A weak euro could make it cheaper to take that long-planned trip to Paris. Just don’t sell your foreign-stock mutual funds to pay for it.

On Wednesday, the euro hit a 12-year low against the dollar—it’s getting close to $1-to-€1 parity (so figuring the exchange rate on that trip will be easier too.) The currency is tanking thanks in part to a weak European economy, as well as the European Central Bank’s efforts to stimulate growth with looser monetary policy.

Unless you are frequent currency trader, these exchange-rate ups and down may feel pretty remote from your portfolio. But they’re not. If you hold a foreign-stock mutual fund in your 401(k) or IRA, you will have significant exposure to European stocks. And since those stocks are denominated in euros, their value to a typical American investor has taken a hit.

Consider: Over the past year, the MSCI All-Cap World EX-USA index is up 14.6% in local currency terms through Feb. 28. But according to Morningstar, the average foreign stock mutual fund—with roughly half its assets in Europe —has pretty much sucked wind, falling 0.06%.

What gives?

Just as the falling dollar makes European hotel rooms and airplane tickets relatively cheaper when their euro-based prices are translated into dollars, foreign stocks get knocked down in dollar terms too. When a U.S. mutual fund calculates its value at the end of the day, it converts the euro price of European stock back into dollars. So if the euro is falling fast enough, you can see loss in dollars even if the stock is climbing on the local stock exchange.

The same effect holds for bonds, or any other asset traded in another currency.

To be sure, it is possible for canny fund managers to use financial instruments, such as futures contracts, to “hedge” away currency fluctuations. Some do exactly that. Pimco, for instance, offers both hedged version of its foreign bond fund (up 10.8% over the past 12 months) and an unhedged version (down 5.7%).

Does hedging make sense? With foreign stock funds, the answer is generally no—which is why comparatively few funds do it. It drives up cost, and over the long run currency fluctuations tend to be less important than the economic fundamentals driving stock returns. The Euro’s recent plunge may be dramatic, but it’s also relatively unusual.

It’s slightly more common with bond funds. Vanguard, for instance, hedges the returns of its flagship foreign bond index fund, but not its flagship foreign stock fund. The reason it has given for hedging bonds: Since the underlying returns of bonds are usually fairly steady, currency fluctuations can an have outsized impact on your final return.

Of course, whatever the investing strategy you pick, the thing to remember about short-term currency moves is that they are just that, short-term. Think of it this way: When the dollar starts to weaken again, those foreign stocks will look like winners. In the end, holding some funds whose stocks are valued in foreign currencies provides extra diversification, helping smooth the overall return of your portfolio in the long run.

Now, if you can just find another way to fund that trip to Paris.

Your browser is out of date. Please update your browser at http://update.microsoft.com