In the light of current economic events in Europe and USA I am thinking long term strategies how to protect myself by adjusting base account currency and picking currency pairs wisely.
Some say that USD is unreliable and who knows what can we see in upcoming months. That means if we have USD as our base account currency further inflation of USD can hurt our accumulated profits.
Others express worries, that Euro can fall completely and Europe could return back to local currencies. While some countries can still preserve fixed ratio between Euro and local currency still there is possibility that accumulated profit in EUR account will strongly suffer.
That leaves us basically with GBP and CHF as alternatives, however having these as base currency we force ourselves to constant conversions between currencies while trading pairs, wiring money, etc. Not to mention this complicates broker selection and may add some legal overhead in some cases.
What do you think about all of this? Should we worry at all about USD or EUR, or do you think it's worth to safeguard ourselves ?
What base currency do you recommend?
What currency pairs for portfolio diversification we should consider (that are not so much interdependent)?
I would like to hear opinion also of those who manage larger accounts, or maybe even work in financial institutions and could share professional insight about situation.