Is Foreign-Currency And Asset Exposure As Enticing As It Seems?
With the U.S. dollar weakening throughout 2025 after more than a decade of strength, many investors are wondering whether 2026 is the year to increase exposure to foreign assets and international currencies.
Recent commentary across the industry points to several forces at play—from expected Fed rate cuts to historically high tariffs and ongoing political uncertainty. While some analysts see continued weakness ahead for the dollar, others caution that currency cycles are natural and often unpredictable.
At SEIA, we believe clarity begins with understanding what you already own. As Sam Miller, Executive Vice President of Investment Strategy at SEIA, notes in the piece:
“If investors own international stock funds or large-cap U.S. multinationals which get a large percentage of revenue from abroad, they already have exposure to foreign currencies.”
For investors considering whether additional foreign-currency or international asset exposure makes sense, ask if it aligns with your overall goals, risk tolerance, and portfolio complexity. These strategies can offer diversification and potential return enhancement, but they also introduce new layers of risk.
The bottom line: There’s no one-size-fits-all answer. Currency movements are cyclical, and thoughtful portfolio construction should guide decisions.
Read the full article from Ben Mattlin at Financial Advisor Magazine:
https://www.fa-mag.com/news/is-foreign-currency-exposure-as-enticing-as-it-seems-85110.html
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