Investors may want to reduce international exposure right now and stick with the home court.
According to Main Management CEO Kim Arthur, global markets will meaningfully struggle due to the softening greenback.
“One of the highest predicting factors for [the] future performance of international stocks versus U.S stocks is what the U.S dollar does,” Arthur told CNBC’s “ETF Edge” this week. “From 2011 to 2022, the dollar was in a straight bull market, so you were gonna lose in international equities no matter what you did.”
On Friday, the U.S. dollar index hit a 15-month low. It comes about 10 months after it hit a 10-year high.
“The dollar topped last September, okay? So you really have to have an opinion on where the dollar is going. We personally think the dollar is heading down,” said Arthur.
Arthur, who was head of Bank of America’s institutional sales and trading department, believes the dollar will eventually return to a period of…
