It’s obvious that the falling dollar has had a positive impact on International equities, but how much?? One way to compare the two is to see how much a Barclay’s International ETF has performed vs. the index upon which it’s based (trading in the local currency).? The Washington Post just ran an article analyzing this, and it found that, for example, “Year to date through Nov. 28, the EAFE index was up 17.4 percent in dollar terms but had gained only 7.9 percent in local currencies.”? When you’re thinking of rebalancing your portfolio, think about whether you want to continue making this dual bet:? that International equities will continue to flourish and that the dollar will continue to fall.? These two factors will greatly influence whether the excellent returns of 2006 will happen again in 2007.