A Dollar in Decline Supports Case for International Equities

Group 1 - The declining dollar enhances the investment case for international equities, particularly as the Federal Reserve is expected to continue easing monetary policy, which may strengthen local currencies abroad [1][2] - The performance of the MSCI World Ex USA index has outpaced the ICE US Dollar Index year-to-date, indicating a growing strength in international equities, with potential for further widening of this performance gap due to upcoming interest rate cuts [3] - The trend of de-dollarization is evident as more countries are moving away from the U.S. dollar as the world's reserve currency, impacting the investment landscape [3] Group 2 - Investors must consider the nuanced risks associated with international equities, including political and economic risks specific to countries, as well as the impact of tariffs [4] - Passive funds, which are tied to indices, may not provide the necessary flexibility to navigate volatility in international markets, making actively managed funds a more suitable option [4][5] - The Thornburg International Equity ETF (TXUE) is highlighted as a recommended fund, leveraging the expertise of Thornburg's investment management team to effectively navigate international markets [6]