People are worried that the Dollar is going to crash. On Google they’re searching for it at a higher rate than they have over the last 5 years.
These fears are likely linked to the fact that the Fed and the treasury have been hyper active trying to stabilize the economy and the markets. Their efforts, people fear, will lead to rising inflation and a weaker dollar. So the question is, even if you knew this was a fait accompli, what would you do about it?
Would you sell your stocks? Probably not.
Would you sell your bonds? Maybe.
Would you buy foreign stocks? Probably.
Would you buy gold? Yes
The tricky part about this topic, dollars and inflation, is that it’s linked more to feeling than to substance. It’s driven by emotion and not data. It’s fueled by political views and not rigorous analysis.
The reality is there is not one single variable that can determine the outcome for all asset classes.
The strength of the dollar matters, but it’s not the only thing that matters.