Lost in the news of the surging US stock market is the concurrent weakness of the US dollar. This week US Treasury Secretary Steven Mnuchin endorsed the dollar decline in Davos, sending it down further.
Ray Dalio, founder, chairman, and chief investment officer of the world's largest hedge fund, Bridgewater Associates, had this to say about the declining dollar:
There are few investors with a better long-term track record than David Swensen, the chief investment officer of Yale's endowment since 1985 (approximately 13.5% annualized). So when Swensen sits down to talk about how he achieved his long-term investment success and about how he views today's investment risks and opportunities, I listen with full attention.
1Neither asset allocation nor diversification guarantee a profit or protect against a loss in a declining market. They are methods used to help manage investment risk. 2Mutual funds and exchange-traded funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained directly from the fund company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.