Jeffrey Gundlach, the legendary mind behind DoubleLine Capital, only invests in dollar-denominated assets.
The primary reason for this, he notes, is to avoid currency volatility.
In March, investing in dollar-denominated or dollar-hedged international stocks would’ve been a smart move.
Reuters’ Scott Barber created this chart that overlays country stock market performance based on local currencies and the U.S. dollar. As you can clearly see, dollar-priced returns outperformed local currency-priced returns in nearly every international stock market.
In Portugal, investors would’ve actually made money in dollar terms, while losing money in euro terms.