If you are going to challenge the notion, then bring some facts and evidence other than your opinion and try to convince the readers of the thread I'm not correct. For other readers let me be precise: Home currency is the one that matters as a unit of measure, because that is where one does the largest portion of their consumption and pays their taxes. This clearly would not apply for multi-national corporations that have significant chunks of their businesses in other countries AND do not want to repatriate earnings. If they do want to repatriate earnings, then home country matters again.vincent_c wrote: ↑Tue Mar 16, 2021 3:09 pmWhy is it that I am the one that is mixing things up.
There is an assumption here that I am challenging which is this whole notion that for 99% of the planet it is their home currency.
Why is this not a valid condition?
What is the difference between someone with infinite money and someone who has X% of their money that will never be spent. I would argue that the X% should be managed in the same way as the person with infinite money.
Now the only other argument is that there is no need to manage money in that situation. But if we stipulate that the investor regardless wishes to maximize their portfolio in terms of their chosen unit of account, I don't see why one needs to confine themselves to their home currency.
Especially when we're trying to determine what is the best money for the PP, if money is to be a unit of account and store of value, then we should be able to come to a conclusion like for example "gold is the best form of money for the PP and the PP should only be measured in units of gold".
Why not a valid condition? I guess it depends on if you want to have a discussion on the extreme edge and one that likely only applies to institutions. My assumption is we were having a discussion about normal investors who have finite live spans and probably only think to their children's and grandchildren's lives.
If you have money in the "I have absolutely no need for this money" then yeah, manage it based on that premise. Those rules are different, but often rules that apply to that condition are really not good rules for more finite time periods.
So it appears we are deciding if we want to have a discussion about institutional money management vs. private investor needs and requirements.