CURRENCIES
Ongoing geopolitical conflicts have significantly impacted currency markets, leading to sharp moves and shifting safe-haven flows.
The US dollar has been the world’s principal reserve currency since the end of World War II and is the most widely used currency for international trade.
The US dollar has sunk to its lowest in three years as rapidly changing U.S. trade policy unsettles markets.
INTERNATIONAL STOCKS
International stocks have shown significant strength YTD, with some indexes outperforming U.S. counterparts by a considerable margin.
This could signal a potential shift in geographic leadership after a long period of U.S. dominance
This reinforces the importance of international diversification to manage volatility and capture growth opportunities globally.
GLOBAL VS. INTERNATIONAL INVESTING
Investors often get global investing and international investing confused.
International Investing: Typically refers to investing in securities of companies located outside of an investor’s home country. For a U.S. investor, this means non-U.S. companies.
Global Investing: Encompasses investing in securities worldwide, including both domestic (U.S.) and international (non-U.S.) companies.
Typically, global equity funds will include 50%-60% in US equities. While international equity funds will have 0% in US equities.
