The Dollar Is Down

Here's Why Your US Stock Portfolio Is Still Fine

Dear Investor.

Zee here. The US dollar just dropped to fresh lows, and your group chat is probably buzzing about it. Financial news outlets are running headlines about currency weakness, and you might be wondering: “Should I pull back on my US stock investments?”

Here’s the short answer: Not really.

In fact, this might be the perfect time to remind yourself why you invest in US stocks in the first place.

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You’re Buying Businesses, Not Currency

When you invest in US companies, you’re not betting on the dollar’s strength. You’re buying ownership in actual businesses, real companies with products, customers, and the ability to generate profits year after year.

The currency is just the wrapper. The real value is what’s inside.

Example 1: Microsoft

Consider Microsoft, the tech giant worth over US$3 trillion today. Over the past two decades, Microsoft has transformed from a software company into a cloud computing powerhouse. Its revenue has grown from around US$32 billion in 2003 to over US$211 billion in recent years.

That’s not luck, that’s a business model that adapts, innovates, and compounds value. Microsoft’s Azure cloud platform, Office 365 subscriptions, and enterprise services create recurring revenue streams that keep growing regardless of what the dollar does on any given day.

When you own Microsoft stock, you own a piece of that wealth-generating machine. The dollar might fluctuate, but Microsoft’s ability to serve customers and grow earnings marches steadily upward.

Example 2: Coca-Cola

Or look at Coca-Cola, one of the world’s most recognized brands. This beverage giant operates in over 200 countries and sells roughly 2 billion servings of its products every single day.

Over the past 20 years, Coca-Cola has grown its revenue from about US$21 billion to over US$45 billion. More importantly, it’s returned enormous value to shareholders through consistent dividend payments, dividends that have grown for over 60 consecutive years.

Like a tree that keeps producing fruit season after season, Coca-Cola’s business generates cash flow that gets distributed back to shareholders. That’s the power of owning quality businesses: they create new income streams that multiply over time.

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Managing Currency Risk, Not Eliminating It

Here’s what experienced investors understand: currency fluctuations are part of the game. The dollar goes up, the dollar goes down. That’s just how global markets work.

The goal isn’t to avoid currency risk entirely, that’s impossible if you want access to some of the world’s best companies. Instead, the goal is to manage it intelligently.

The secret? Find companies that grow their earnings consistently year after year. When a business keeps getting more profitable, increases its dividends, and expands its market presence, that fundamental growth cushions any short-term currency swings.

Think about it this way: if Microsoft grows its earnings by 15% this year, and the dollar drops by 5%, you’re still ahead by 10%. The company’s growth more than compensates for currency movement.

A weaker dollar today becomes a minor footnote when your company’s profits are doubling or tripling over a decade.

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Why Strong Businesses Trump Currency Concerns

Quality companies have another advantage: many of them earn revenue globally. Microsoft sells software worldwide. Coca-Cola sells beverages on every continent. When the dollar weakens, their foreign earnings actually become more valuable when converted back to US dollars.

It’s a built-in hedge that many investors overlook.

More importantly, these businesses have pricing power. They can adjust prices, optimize operations, and find new revenue opportunities regardless of currency conditions. That’s what separates great companies from mediocre ones.

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What Really Matters for Investors

If you’re just starting your investing journey, here’s what deserves your attention:

Focus on business quality, not currency headlines. Ask yourself: Does this company have a strong competitive advantage? Are its earnings predictable and growing? Does it return value to shareholders through dividends or buybacks?

Think long-term. Currency rates swing wildly in the short term but tend to revert to reasonable ranges over years. Meanwhile, compounding earnings work relentlessly in your favor.

Remember the fundamentals. Predictable, growing profits beat short-term currency movements every single time. A company that can grow earnings at 10-15% annually will create wealth regardless of whether the dollar is strong or weak on any particular day.

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The Bottom Line

Predictable, growing profits beat short-term currency movements every time. Focus on quality businesses with strong fundamentals, and the currency noise takes care of itself.

The dollar might be down today, but great companies keep marching upward regardless. They innovate, expand, serve more customers, and generate higher profits. That’s what builds wealth over time.

Remember: you’re not investing in pieces of paper with presidents’ faces on them. You’re investing in businesses, real operations with products, customers, employees, and growth trajectories. Those businesses existed before this dollar dip, and they’ll exist long after.

Currency movements come and go.

Great companies endure.

Keep your eyes on what matters, and your portfolio will thank you for it.

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Disclaimer: All information here is for educational purposes only. This is not financial advice. Please do your own research and speak with a licensed advisor before making any investment decisions. Past performance is not indicative of future returns. How we invest may not suit your investment goals and risk management profile.