Like many things, diversification isn’t a priority to many investors until it is. In 2025, a weak dollar has many investors looking for better returns from international stocks. The macroeconomic view is that a weaker U.S. dollar (USD) increases the value of foreign earnings when converted to USD, making international stocks more attractive.
The passage of the Trump administration’s One Big, Beautiful Bill raised Congress's debt ceiling cap. Even while Congress is making some spending cuts around the edges, more government spending is inflationary, which will keep pressure on the dollar. Also, analysts are reasonably confident that the Federal Reserve will begin cutting interest rates sometime this fall.
