Falling Dollar – Good for Emerging Markets
Market Updates
02/24/21
In recent market updates we have been talking about the falling US Dollar (Big Mac Index and U.S. Treasuries). When the US dollar falls in value, international stocks (especially emerging markets) outperform US stocks. From 2000-2010, emerging markets outperformed US stocks as the dollar was falling. Then in the next decade (2010-2020) US stocks outperformed international stocks as the dollar was rising. With the dollar uptrend broken, this is the time you want to own international and emerging market equities in your portfolio.
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Written by
James E. Gore, CFA®, CAIA, CMT®
Jim serves as the Chief Investment Officer of THOR, is a Chartered Financial Analyst charter-holder, a Chartered Alternative Investment Analyst, a Chartered Market Technician, a member of the Association for Investment Management and Research and a member of the Cincinnati Society of Financial Analysts.
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