If inflation-adjusted interest rates decline in a given country, its currency is likely to decline.
There are two main drivers of asset class returns - inflation and growth.
What I'm trying to say is that for the average investor, what I would encourage them to do is to understand there's inflation and growth - it can go higher and lower - and to have four different portfolios essentially that make up your total portfolio that gets you balanced.
When growth is slower than expected, stocks go down. When inflation is higher than expected, bonds go down. When inflation's lower than expected, bonds go up.
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