I was published at Casey Research with an article on the Bulgarian lev, the Hong Kong dollar, and how investors should think about holding cash outside the US dollar.

In the article, I discuss why the Bulgarian lev appeared undervalued on a purchasing-power basis, but was still too risky to treat as an investment because it remained a fiat currency dependent on government action. I then argue that the Hong Kong dollar offered a more attractive alternative for those who had to hold some cash. Because the Hong Kong dollar was pegged to the US dollar, downside risk against USD was limited, while the long-term pressure on the peg suggested potential upside if the currency were ever allowed to appreciate.

Read the archived article at Casey Research via the Wayback Machine →