What happens to a stock portfolio if the dollar continues to depreciate?
It depends on what kinds of stocks are in your portfolio. If we have export oriented stocks in our portfolio really we are going to benefit from depreciation of US Dollar. Export companies get a larger number of U.S. dollars when they convert from other world currencies. Their product make more competitive in international market. If your portfolio is consist with companies who depend on imported raw materials then manufacturing cost will go higher due to decline of purchasing power of the US Dollar and will put pressure on their profit margins and bottom lines. If your portfolio is not limited to in any one economic sector and have also diversified internationally and hold stock in companies that operate around the world, marketing worldwide then declining dollar will have both positive and negative effects on your portfolio. Generally, export oriented companies do not like to see appreciation of their currency. They prefer depreciation of currency against other currencies to be compe
