In The News

How the Strong Dollar Affects Your Portfolio

A diversified investment portfolio has both domestic and international components, but a strong dollar can be a drag on performance.

The dollar’s recent strength has cost U.S. investors as much as 9 percent per year since 2013, and more than 2 percent per year during the last decade, according to the Leuthold Group.

How investors can mitigate the performance-drag impact has been debated for years, says John De Clue, chief investment officer of the Private Client Reserve of U.S. Bank in Minneapolis, “especially in recent years when you’ve had the dollar catch fire and become so strong.”