Devere CEO advises moving away from US assets amid dollar weakness

Nigel Green, CEO of Devere Group, a leading financial advisory and asset management firm, has advised investors to reevaluate their portfolios due to the U.S. dollar's recent decline, which signals a potential shift in market dynamics. 

The dollar's drop, which has fallen by 2.2% against a basket of rival currencies in August, reflects a broader shift in investor sentiment as expectations of multiple rate cuts by the Federal Reserve grow.

Green emphasised that this weakening of the dollar presents both opportunities and challenges, particularly for those managing global portfolios. 

A weaker dollar typically makes commodities, emerging market equities, and foreign bonds more attractive to U.S. investors, as favorable exchange rates enhance their appeal. 

Green advised that now may be the time for global investors to rebalance their portfolios by increasing exposure to international markets that stand to benefit from the dollar's retreat.

In particular, Green suggested that investors should consider increasing allocations to exchange-traded funds (ETFs) that could benefit from this trend. 

Additionally, he highlighted the potential for diversification in commodities like gold and oil, which are priced in dollars and often see price increases when the dollar weakens.

As investors await further guidance from Federal Reserve Chair Jay Powell at the upcoming Jackson Hole symposium, Green concluded that the dollar's decline suggests a shift in market dynamics that could benefit those who act strategically. 

He recommended that investors consider diversifying away from U.S.-centric investments and increasing exposure to assets that benefit from a weaker dollar in the coming months.