Over the past few years, many investors have avoided developed international equity markets for a variety of reasons: anemic growth, disappointing economic data and geopolitical uncertainty. Brian Manby discusses reasons why investors should be optimistic about international equities again.
Most investors we talk to say they do not want to make a “currency call,” then default to being unhedged in their investments, making the implicit call that the dollar is going to forever decline. Jeremy Schwartz makes the case for currency hedging your international portfolio.
It wasn’t that long ago that we were experiencing a spectacular degree of dollar strength in 2014 and 2015. We have been focused on helping investors better understand the drivers behind different currency movements, and this post examines both valuation and economic growth indicators.
As we seek to understand movements of the U.S. dollar, we’ve noticed three big-picture factors that come up time and again: inflation, elections and policy. Christopher Gannatti evaluates each of these in turn.
After depreciating in 2017, the U.S. dollar recently has reversed this trend and rallied more than 5% since February. If the dollar continues to strengthen, investors may want to consider small caps for their U.S. equity portfolio.
Currencies rarely move in a single direction for an extended period, especially in today’s world. WisdomTree is a strong believer that hedging helps neutralize currency movements and should be used strategically in portfolio allocations.