You may be facing immense foreign-currency risks in your investment portfolio – and not even realize it.
If that's the case, don't feel bad: You're not alone.
The reality is that most American investors have no idea that currency exchange rates directly affect U.S. corporate earnings, this country's stock market, or the growth rate of our economy.
The bottom line: These investors don't realize that they face some pretty major foreign-exchange-rate exposure in their investment portfolios – as well as with the individual stocks contained in those portfolios.
This exchange-rate exposure can be accompanied by some pretty major risks. Understanding how currency fluctuations can enhance or destroy corporate earnings, the export sector and the U.S. economy, and even your personal wealth will make you a smarter, better investor.