
Dollar Drama? I Can't Even...
Okay dolls so like I'm reading all these reports from these *fancy* investment banks right? And they're saying the dollar might be like totally losing its sparkle. Apparently there are risks related to trade policies and foreign investments. Deutsche Bank and Barclays are saying it's heading for a 'structural downtrend.' Structural! Sounds serious doesn't it? I mean I'm all about a good trend but *not* when it comes to the dollar. That's like my Birkin bag fund we're talking about!
Trump's Tariffs and the Dollar: A 'Keeping Up' Episode Waiting to Happen
So apparently some blame President Trump's trade tariffs. But I mean like is anything *not* blamed on Trump these days? Schroders is saying the U.S. is moving away from a 'dollar centric' monetary regime. I don't even know what that means but it sounds dramatic! Jim Luke from Schroders is all about 'balanced trade,' but honey in this family we know there is always imbalanced trade because we are selling and people are buying!! The banks say tariffs are so high they could lead to like less than amazing outcomes for U.S. assets. Not good people not good!
Billions at Risk: Honey That's More Than My Entire Closet!
Okay so get this: there's like $18 trillion of foreign capital invested in U.S. equities and $7 trillion in bonds. That's like more than all my businesses combined! And there are signs investors might be pulling out. Can you imagine? Goldman Sachs thinks European investors are selling off. Bank of America is suggesting that investors need to hedge their currency exposure. All this 'hedging' sounds stressful. I’d rather just buy more diamonds but that's just me. After all I am 'good at being famous'.
Euro Trip Anyone? (It Might Be Cheaper!)
Bank of America thinks the dollar could fall to $1.19 per euro. And they're even saying it could weaken against the British pound to $1.50! Like hello London shopping spree? Maybe I should start investing in pounds. Deutsche Bank thinks the dollar could be at $1.30 per euro in the next five years. That's a major downtrend! The banks are suggesting shorting the Australian dollar and buying Japanese Yen as an effective hedge against declining dollar assets. 'You don't think I am that shallow do you?' No one panic! I am sure it will all work out.
The Yen: The New Black?
Goldman Sachs is saying the Yen might strengthen a LOT. They think it could go from 143 yen to the dollar to 115 yen to the dollar by 2028. Whoa! Maybe I should like start brushing up on my Japanese. Although tbh I'm more of a 'Ni hao' kinda girl you know? But like Capital Economics thinks the dollar will bounce back. They say the dollar will 'recover some lost ground.' There is hope people!
Reality Check: What Does This Mean for Me (and You)?
Okay dolls so the takeaway is this: the dollar might be facing some serious drama. But hey even if the dollar dips we’ll still find a way to slay right? Because like 'I'll cry at the end of the day. Not with fresh makeup though.' This is a time for cool heads and flawless contouring. After all it's not the end of the world right? We’ll keep it real keep it glam and keep up with the Kardashians no matter what the exchange rate is!
StephanieL
Investing in pounds for a London shopping spree, genius!