Dear readers, I am an investor with holdings in both Singapore and US stocks with both making half of my portfolio. Over the recent years, I have seen how US stocks have performed much better than Singapore stocks on average. This is inevitable since some US stocks have their world as their markets and are world market leaders. But this has not made me put more of my investment into US stocks. And do you know why?
Well, if we are to take away the factor of a volatile stocks market, the reason has really to do with the outlook of the US dollar in which the US stocks are denominated.
And the ultimate question is on the longer outlook of the US dollar against the backdrop of current stock markets.