Advisors Muscle Up Client Portfolios as Dollar Weakens

David Krakauer, vice president of portfolio management at Mercer Advisors, advised against trying to make “heroic bets” when navigating a falling dollar. “A simple market-cap-weighted global equity portfolio naturally tilts toward markets whose returns rise when the dollar falls,” he said. “It’s an elegant way to keep the portfolio globally balanced while letting currency translations work in your favor.”“Adding foreign bonds and currency exposure can introduce additional sources of volatility to fixed inco ...