Changes in currency can affect your investment results. In recent years, a strong U.S. dollar has increased global returns for many investors. Now that the dollar has returned to fair value, that impact may shrink. LBW advisors guide clients through these changes and help explain how currency and investment returns work together.
This blog outlines why currency has had a big role recently, what could change, and why a global approach still matters. Our Geelong financial planners support investors with clear and simple advice.
Why currency made a big difference recently
For about three years, the U.S. dollar was stronger than usual. This added to returns for investors in global markets. For example, international shares returned 17.9% in U.S. dollar terms but only 8.8% in local currency.
That gap, nearly 9%, came just from currency changes. It shows how closely currency and investment returns can be linked.
Our LBW financial advisors in Geelong often help investors understand how global markets and currencies affect performance.
Why currency may play a smaller role in the future
Now that the U.S. dollar is closer to its normal value, future returns may depend more on company results than on currency. There’s no apparent reason for the dollar to go much higher or lower soon. It may stay stable unless significant changes occur in the U.S. economy.
For this reason, we expect currency and investment returns to become less connected than they were before. LBW helps clients look beyond currency moves and focus on a broader investment plan.
Our Geelong financial advisors and planning teams offer support so clients can make calm, informed decisions.
Why diversification still matters
Even if currency plays a smaller part, it still matters. That’s why spreading your investments across countries and sectors helps reduce risk.
LBW encourages clients to think globally. We help you build portfolios that are not tied to just one currency, market, or country.
As part of this, we always explain how currency and investment returns can shift over time. Our team works with you to build strong, steady portfolios.
Talk to our team of Geelong Financial Advisors About Currency and Investment Returns
Even small shifts in currency can have a big impact on your long-term investment results. That’s why our experienced Geelong financial advisors and planners at LBW are here to guide you.
We’ll help you understand how global investing, currency movements, and investment returns fit into your financial plan, giving you clarity and confidence for the future.
For trusted advice that puts your mind at ease, call us on (03) 5221 6111 or book an appointment online at www.lbwca.com.au.
This blog provides general educational information only. The content does not take into account your personal objectives, financial situation or needs. You should consider taking financial advice tailored to your personal circumstances.
LBW Business + Wealth Advisors is an Authorised Representative of LBW Wealth Pty Ltd ABN 56 652 382 128 AFSL 534569. Please see our website www.lbwca.com.au or call 03 5221 6111 for more information on our available services.
