June 30, 2023
U.S. dollar strength in the past decade, combined with U.S. stocks’ robust performance, had led some investors to be wary of investing in companies outside of the United States. However, after hitting a high in September 2022, the U.S. dollar started to tumble against a basket of foreign currencies. Historically, weakening U.S. dollar has been positively correlated with the outperformance of international stocks (MSCI EAFE) vs. U.S. stocks (MSCI USA). As such, we believe now is an opportune time for investors to consider international equities.