In our Q1 edition of Portfolio Matters, we spent some time discussing the impact that the strong dollar has had on economies and investments around the world. In this post, we’ll cut right to the bottom line.
The U.S. dollar is on an unprecedented tear, having appreciated against a basket of foreign currencies by 9.1% in the last 3 months and by 14.5% in the last 6 months. This marks the U.S. dollar’s biggest quarterly gain since September 2008 and the 4th largest 6-month gain in nearly 50 years. (Statistically speaking, both the 3-month and the 6-month gains are both 2 standard deviation events.)