The US dollar is on track for its worst year in modern history

From outside the US, all the 'stock market gains' have actually been zero or negative because of this. I wonder how long before inflation hits...

Because stock market gains can't keep up with the lose of the dollars value? Assuming that you bought your stocks using Euros or some other currency?

Yeah, that's what they mean. Here's a euro-denominated S&P500 ETF: https://finance.yahoo.com/quote/CSPX.AS/

and a USD denominated one: https://finance.yahoo.com/quote/SPY/

Have a look at the 1 year view. Note the fairly dramatic difference.

Not in Australia. Our dollar has taken a beating too. I guess digging holes and selling property to each other at ever higher prices isn’t that interesting to the rest of the economic world.

This is spot on and cuts both ways. Much of the Japanese market's recent "performance" in US media is actually just yen weakness against the dollar. Strip out currency effects and the story looks very different. Same with European markets "performance" - we're often seeing monetary policy divergence rather than genuine outperformance in foreign markets.

Always check both local currency and USD returns when evaluating international markets.

> I guess digging holes and selling property to each other at ever higher prices isn’t that interesting to the rest of the economic world.

Wow this is the case in most of the Europe too, what a coincidence. Fancy investing in our premium real estate?

European markets are doing fine in Euro terms aren’t they?

Australia printed a lot more money relatively than the US from COVID-19 until now, largely to capitalize on a booming commodities sector. A factor that led to some do weakness.

But I think any weakness is temporary. With a stable government and abundant natural resources that will be even more sought-after in an AI-driven world and largely insulated from automation Australia’s long-term prospects look strong.

If only it were easier to buy etfs that aren’t PFIC’s

You should evaluate foreign market results based on your domestic currency. Here is the US centric example.

1. You exchange Dollars for Euros

2. You buy a stock in Euros

3. You hold the stock in Euros for a period of time

4. You sell the stock in Euros

5. You exchange your Euros for Dollars.

The difference in the exchange rate in step 1 and 5 can have a very large impact on your total return, often times a larger impact than step 3.

If that doesn't work, let's try "one part of the population chasing another part into concentration camps!" That'll attract investors.

Every empire starts with free labour. Cheap labour is too expensive.

MSCI Europe is up about 8-9% in euros so far this year—roughly the same as the S&P 500 in dollars.

But the euro itself has climbed ~10% YTD vs the dollar (≈ $1.02 → $1.12-1.18). So you get an ~18% gain if you invest in MSCI Europe in dollars.

Europe hasn't "beaten" US stocks because its companies suddenly out-executed; most of the gap is the stronger euro.

Not that it matters who’s "winning." My gripe is with US headlines that shout "Japan stocks are on fire" or "Europe stocks are on fire," when what’s really happening is that global markets are rising together and currency swings make one region look better than another.

Australia's already tried that one: https://en.wikipedia.org/wiki/Aboriginal_reserve

Lol, Australia and Canada seem to be very similar in this regard.

While there's a lot of truth to that, I think that works better in undeveloped economies, and in the past, than now.

The Hole just got 10 ft deeper!