an unmissable opportunity to buy US stocks?

US stocks account for roughly half of my invested portfolio. However, while some of them have performed well on paper in recent months, the actual return hasn’t been that good. One reason is the appreciation of the pound against the dollar.

With £1 now worth $1.36, the pound has appreciated more than 12% from its lows in January. This is 12% that’s been wiped off the value of many of my investments. Incidentally, my portfolio peaked around mid-January. It’s not a coincidence.

The pound may be marginally stronger globally, but really it’s all about the dollar getting weaker. It’s not quite the haven it used to be, and that’s why we’re also seeing gold prices surge.

The issue however, isn’t how we got here, but what happens next. Consensus forecasts suggest the pound could strengthen further against the dollar, driven by expectations of US rate cuts and relative UK economic resilience.

Morgan Stanley projects GBP/USD to reach 1.40 by the end of 2025 and 1.47 by late 2026, citing a likely slowdown in the US economy and a diminishing dollar yield advantage. Near-term volatility remains tied to economic data releases and central bank policy signals.

All of this means that investors should remember that currency fluctuations can undermine our investments. And if the pounds really does continue to rally against the dollar, then that means we need to be even more considered about our US investments.

I’ll also add that I’m worried the US stock market is getting a little hot right now. Major indices aren’t far off their highs despite effective tariffs rates increasing eight fold.

I recently bought shares in Pinterest (NYSE:PINS) because its valuation and growth profile appealed to me in an increasingly hot market. The company trades at a forward price-to-earnings (P/E) of 18.8 and boasts a price-to-earnings-to-growth (PEG) ratio of 0.58.

Collectively, these two figures tell us that the stock’s well priced in the near term — trading at a 15% discount to the information technology sector average — and the PEG ratio’s significantly below what we’d normally consider good value. Consensus estimates shows the P/E ratio falling from 18.8 in 2025 to just 8.3 by 2028, as profits accelerate.

Recent results have also been strong. Q1 2025 revenue jumped 16% to $855m, while global monthly active users climbed to a record 570m, up 10% from last year. Pinterest’s artificial intelligence-powered ad tools have driven both user engagement and advertiser performance, supporting double-digit revenue growth and improved profitability.