How to invest in Asia when US dollar (USD) is down 10% YTD?
The US Dollar has devalued by 10% in 2025 (YTD).
Image from barchart - USD fell 10% in value in 2025 YTD
It can take months or years before the market enters a correction. It can also happen in a moment. A market top cannot conceal some of the market weaknesses in debt and demand. Consider building a portfolio that benefits from a bull, bear or baboon run.
Inputs from Grok:
Market corrections are unpredictable, as evidence suggests they can strike suddenly or develop slowly due to factors like tariffs or recessions, with 2025 forecasts ranging from 10-16% drops. Hidden weaknesses, such as high debt or weak demand, often lurk at market peaks, as seen in past crises like 2008. Diversifying portfolios across asset classes and regions is a solid strategy to navigate bull, bear, or volatile markets, though it’s not foolproof. Let us be sceptical of overemphasising market timing—long-term investing often outperforms, as markets historically recover. Focus on resilience, not prediction.
To hedge a 10% USD devaluation, non-USA investors with SGD and HKD assets can use currency forwards to lock in rates, invest in non-USD assets like European stocks, or diversify into gold or SGD-based ETFs. HKD's USD peg means it weakens too, while SGD may strengthen, affecting returns. A 16% margin may cover the 10% loss and 1-2% trading fees, but effective hedging could lower this need to 11-12%. Costs vary by broker, and further devaluation is possible. Consult a financial advisor for tailored strategies.
My investing muse
Some have said that it is about time in the market, not timing the marketing. There needs to be some criteria that the business has - a track record of revenue and profits growth, competitive advantages, strong free cash flow and a strong management team. We need to do more in-depth qualifications before investing.
Given the climate and restraint shown by institutions, I preferred to monitor the market from the sidelines. The market is hitting peak with overvaluation. There is still money to be made in the current market, and let us take up positions with an adequate margin of safety. Wishing all success.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- JediGingerNinja·06-30TOPNZD currency has gained on USD so im more bullish on US stocks when I get more through exchange rates for my kiwi dollars.1Report
- Kristina_·06-30TOPTotally agree — timing is tricky, but solid companies with strong tech, real cash flow, and visionary leadership always win long-term. I'm still watching EV and AI plays closely. 🔋🤖📈1Report
- AL_Ishan·06-30TOPCorrections or not, I’m here for the wild ride 😂 I just make sure to keep some dry powder and chase the next moonshot. Risk is part of the fun. 🚀📉📈1Report
- HaydenBruce·06-30TOPGreat perspective1Report