Why am I not making money from investing in the United States?

Despite geopolitical tensions, Trump's policies, and daily news, the US stock market continues to hit record highs day after day. In fact, stock markets around the world seem to be refusing to decline significantly. However, if you have investments in the US—whether directly through stocks or through mutual funds—you'll have noticed that your returns aren't as high as they might seem. Why is this?

The answer lies in the currency exchange rate effect: the weak dollar is reducing some of the returns generated by rising stock prices. As of this writing, the euro is worth $1.17. On March 1, however, the exchange rate was almost completely flat, and one euro was worth $1.03. This means that in just six months, the dollar has devalued by nearly 15%. However much stock market positions have risen, if they haven't risen by more than 15%, we are actually assuming losses. And even when the appreciation reaches 20%, the final profit once converted into euros is much more modest than we might expect.

Therefore, when investing in foreign markets, currency risk must be kept in mind. For more experienced investors, there are hedging instruments such as futures contracts; and for novice investors, currency-protected funds can help minimize this impact and protect real investment returns. The best advice for portfolios is always the same: don't put all your eggs in one basket. Diversifying not only by sector and geography, but also in terms of currency, can make the difference between a profitable portfolio and one that stagnates.