Schwab Network Jim Masturzo on Dollar Weakness, AI Hype, and Global Opportunity
Apr 16, 2026
Jim Masturzo, CIO at Research Affiliates known for currency and global valuation expertise, explains why the U.S. dollar is losing its safe‑haven allure as tensions ease. He highlights stretched U.S. equity valuations and a tilt toward non‑U.S. and emerging‑market opportunities. He also questions AI hype and urges diversification away from concentrated mega‑cap positions.
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Dollar Losing Safe Haven Status
- The U.S. dollar's safe‑haven rally has reversed as geopolitical tensions ease, removing a headwind for non‑U.S. investments.
- Research Affiliates expected the dollar to sell off after 2025 and now sees further weakness, especially versus emerging market currencies.
Rebalance Away From U.S. Concentration
- Shift allocations toward non‑U.S. equities because U.S. stocks trade at near‑record multiples while many foreign markets look fair or cheap.
- The dollar tailwind plus valuation differentials creates a compelling rebalancing opportunity for U.S.‑heavy portfolios.
Emerging Markets Rally With Regional Nuances
- Emerging markets, particularly East Asia and South America, are rallying as conflict risks fade and currency moves help returns.
- Korea retraced much of its early‑year gains then rallied again; Brazil and Chile appeal as commodity and water exporters for long‑term investors.