Forex hedge funds could stage comeback in 2013

If forex works properly, it can help balance out the real economy

Foreign exchange markets will boom over the next two years as interest rates tighten, predicts Robert Savage, chief strategist at FX Concepts.

"Foreign exchange markets are a shock absorber. If they are working properly, they help balance out the real economy from that of monetary and fiscal policy," says Savage. In the uncertainty caused by markets guessing when exactly rates will tighten, the foreign exchange market will be "a healthy shock absorber to some of the pain".

This means the dollar