Novice question: If I'm planning to live long-term in the UK, and investing in US stocks with a view to holding for 30 years or more, what impact does currency fluctuation have on this picture? The US is more economically diversified and more dynamic than my home nation, and makes more sense to invest in. But if sterling hits 1:2.50 against the dollar (it's currently around 1:1.60), any gains will be destroyed by the currency change, right?
So, what kind of investment strategies offer a hedge against a long-term change in the currency balance between the nation in which you make your money (through your stash), and the one in which you spend it?