Dollar buys a Euro for the first time in 20 years

[Aardvark]

I saw this chart in a NYT article and it got me thinking...
Could this be a significant enough factor to reconsider the geographical weightings of my investments?
I'm not talking about anything crazy - just skewing things a bit towards the EU/UK to take advantage of a stock sale (Vanguard European Stock Index is down 35%) on top of a currency sale?

[ATtiny85]

No. That's my final answer.

Whatever plan you have/had in place for international exposure should have taken this possibility into account. Now is the time to simply continue to execute (likely meaning rebalance and just get on with life.) Making a fundamental change based on short term results is not the way I approach my wealth building.

I have been investing for the entire time scale of that plot, and it feels like a pretty short timeframe. I've kept about 15% equity exposure to international throughout. The TDF in my 401k I use (0.04% ER!) also some weird international bond and other fancy things, but those are only a couple percent of the holdings.

[lutorm]

We need to make a pretty significant European investment (buying a house) in the next ~18 months. This makes me wonder whether it would be worth moving some funds. The problem is that they're currently in T-bills, and as far as I'm aware the reason the USD is going up is at least partly because the Fed is giving a higher rate than the European central banks...

[Heckler]

just skewing things a bit towards the EU/UK to take advantage of a stock sale (Vanguard European Stock Index is down 35%) on top of a currency sale?

No.  Stick to your IPS. 

My EAFE index is doing just fine, sitting 0.7% below it's 17% allocation.  Only giving 3.83% div. yield though.



(or go ahead, buy it up, so I can buy more US instead)

[Hula Hoop]

I earn euro and just got back from visiting family in the US and it was seriously painful how expensive everything was.  Ouch.

[seattlecyclone]

Time for a USD/EUR merger? Currency conversion is annoying. What if we just did less of it?

[PDXTabs]

Time for a USD/EUR merger? Currency conversion is annoying. What if we just did less of it?

Oh god no. The biggest mistake of the EU was to try to use the same currency for Germany and Italy. We're living through the fallout right now. Countries should get to control their own currencies to meet their own domestic situation.

[slugsworth]

Time for a USD/EUR merger? Currency conversion is annoying. What if we just did less of it?

Oh god no. The biggest mistake of the EU was to try to use the same currency for Germany and Italy. We're living through the fallout right now. Countries should get to control their own currencies to meet their own domestic situation.

Not disputing you, but I wonder why it works as well as it does in the US when we have Mississippi and Massachusetts on the same currency.

[PDXTabs]

Time for a USD/EUR merger? Currency conversion is annoying. What if we just did less of it?

Oh god no. The biggest mistake of the EU was to try to use the same currency for Germany and Italy. We're living through the fallout right now. Countries should get to control their own currencies to meet their own domestic situation.

Not disputing you, but I wonder why it works as well as it does in the US when we have Mississippi and Massachusetts on the same currency.

The normal answer is that the USA is a fiscal union. Most of the taxes that are levied are at the federal level, not the state level, and then they are spent on the country as a whole. The EU is sometimes referred to as a monetary union without a fiscal union.