Last week, the pound sterling soared to a 26-year high against the dollar and the euro hit its own two-year peak. You can imagine retail investors across the U.S. were anxiously wondering whether they'd put enough of their savings in assets abroad, even with the Dow's crowd-pleasing performance.

Meanwhile, a bold group of investors were probably feeling validated, yet again. These are the managers who've snapped up local currency paper in emerging markets over the last few years, often taking it unhedged.

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