Dollar weakness impacts foreign investment losses in U.S. stocks

U.S. dollar weakness is impacting foreign investments in U.S. stocks, with European investors facing significant losses. In early 2025, unhedged European investors have seen losses nearly double those of U.S. stocks, as the euro strengthens against the dollar. This year marks a shift, as the dollar's traditional role as a safe haven during market stress is diminishing. Analysts note that if this trend continues, it may lead to a reevaluation of dollar exposure among global asset managers. Concerns are growing about U.S. economic policies and their effects on asset values. With a significant investment deficit, potential repricing of U.S. assets could occur, raising questions about the long-term impact on the economy.