Why is it so important to hold a portion of your investments offshore? Markets have been selling off heavily in the past few weeks - the ASX is off 8% and the S&P500 is off 10%. The Australian dollar, which as a commodity currency goes down when China and resources fall, has also taken a beating. But for those in the US market this is positive – they have gained 6% in the value of their US$ holdings, meaning that their net fall is only 4% in Australian dollar terms. Not bad when the ASX is off double that.