https://www.reddit.com/r/investing/comments/o4d7xh/should_investors_outside_the_us_be_concerned/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

I don’t see this talked much about. If an international investor is buying US equities in dollars, they are paying in their own currency which is converted to dollars. Since the US dollar is the global reserve currency, we obviously had a lot of printing in 2020. 25% of all US dollar in existence was printed last year. Expectedly, this leads to inflation. Whether is temporary or not remains to be seen but it would not be surprising to see a less valuable dollar.

Wouldn’t this also mean a smaller ROI for US stocks? For example, you may make a 10% gain on Apple and gain $13 per share. However, if the pound (£) is now 10% stronger against USD, when your USD is converted back to £, you may not even end up making a profit. It seems this is likely to happen with the inflation numbers coming out. E.g UK YoY inflation was 2.1%, US was 5%.

How do you account for this, if at all, when investing for the long term? I guess you could stick to investing in companies in your own country but the growth is likely not there compared to the US. It becomes a game of balancing the numbers in to see if you end up losing money in a bullish market.