When the dollar is weak, gains in stocks and bonds overseas are worth more in dollars. When the dollar strengthens, any gains overseas in stocks, bonds and currency holdings will be worth less in terms of dollars.
However, I never recommend such investments, or more precisely, this method of trading. It’s speculative and often too much a market-timing strategy for me to suggest for the average investor. ( See the Earl J Weinreb NewsHole® comments.)
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