How the U.S. dollar affects your portfolio

How the U.S. dollar affects your portfolio

Experts say prepare for more volatility


On a daily basis we read news of currency fluctuations and the economic activity of our neighbours down south. The dollar is down, no it’s up, now it’s down again. What’s an everyday investor supposed to do with this information?

At our Invest for Success event—taking place on May 7 in in downtown Toronto—our expert panel of MoneySense contributors and investing experts will help regular investors like us learn how these high-level economic trends will affect our portfolios. We reached out to panelist Stephen Lingard, senior vice president and portfolio manager at Franklin Templeton Solutions for a sneak preview on what he thinks the rise and fall of the greenback could mean for your returns.

Q: When the U.S. dollar makes dramatic moves, the effects can cut across asset classes and have an impact that outweighs fundamentals. How much of an impact has the greenback had on the market’s wild ride in the past six months?

A: Multiple years of unorthodox central bank policy has anesthetized the global economy, supporting only anemic growth and persistent deflationary concerns. This has caused distortions in many different markets, not the least of which has been enormous currency gyrations. This may be a prelude to a pick-up in volatility across more asset classes including equities, fixed income, commodities and investment styles. Valuations across many areas of the market are stretched, which means an active investment approach is critical.

IFS_FACEBOOK_HEADERWant to learn more?

Hear Stephen Lingard and others, including Kurt Reiman, chief investment strategist for BlackRock Canada and MoneySense columnists Norm Rothery and Dan Bortolotti share more investing tips on May 7 in Toronto.

Tickets to Invest for Success are still available. You won’t want to miss out. Register now!