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Strong US Dollar - Where To Invest Now?


Strong US Dollar – Where To Invest Now?

There has been a strong US Dollar for the past 13 years and assets in foreign countries have become cheaper than in the US. The USD strength has benefitted US stock returns since 2008. However, the dollar strength trend is long in the tooth and may be set to reverse. Learn about where to invest if the USD loses strength.

What does the strong dollar mean for your portfolio?

1. When looking at the Big Mac Index (, other currencies are cheap compared to the USD.

2. Techical analysis is showing a potential reversal in trend.

3. During periods of USD weakness, equity returns are attractive in international markets vs. the US

▬ Contents of this video ▬▬▬▬▬▬▬▬▬▬

0:00 Intro

0:24 Big Mac Index, which compares the relative value of currencies

1:24 Technical analysis of the USD chart

2:13 THOR Reversion to the mean chart comparing emerging markets vs. US markets

2:51 Returns of international equity markets vs. US markets during weak dollar period (2001-2008)

3:42 Returns of international equity markets vs. US markets during strong dollar period (2008-2022)

4:35 Conclusion of the state of the USD and where to invest today

▬ What The US Dollar? ▬▬▬▬▬▬▬▬▬▬

According to wikipedia: The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official currency of the United States and several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish silver dollar, divided it into 100 cents, and authorized the minting of coins denominated in dollars and cents. U.S. banknotes are issued in the form of Federal Reserve Notes, popularly called greenbacks due to their predominantly green color. (…)

Written by

Andrew Molnar, CFA®

Andrew is a creative, out of the box thinker with a good eye for detail. In addition to being a member of the Investment Committee, Andrew works on trading, building client relationships, and heads the New Business Development Committee. He is focused on continued education as he successfully completed the Chartered Financial Analyst (CFA) Program and is a Chartered Financial Analyst charter-holder.  He is also an avid reader of all things business, economics, and human behavior.

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