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Aug 15, 2018

How Will The Dollar’s 15-Year Cycle Impact Investors

How Will The Dollar’s 15-Year Cycle Impact Investors

Start of New 15-Year Dollar Cycle Points to 40% Dollar Decline

The dollar, which began a new 15-year cycle in January 2017, is projected to decline significantly by 2024, historically averaging a 53% fall against the euro over past cycles, potentially eroding global investor net worth comparably.


Investors, especially those with dollar-based assets, must navigate currency risk during the 15-year cycle as the dollar depreciates, while euro-based investors will face rapid currency losses and diminished equity returns, necessitating strategies like currency forward contracts to mitigate losses and capitalize on rising currencies.


Access the full report to gain insights on navigating currency risk and protecting your investments in light of the dollar's projected decline.


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"We use the dollar as a lens to assess how trends will unfold in the dollar and other markets since the dollar is the most important price of all prices. Its cyclical long-term trends cause investors, consumers, governments and companies to change their investment and buying patterns as the dollar becomes expensive or cheap. The start of a new 15-year cycle in the dollar points to the dollar falling 40% against the euro and other currencies in the immediate years ahead. The global purchasing power of family offices and investors with large investments in dollar-denominated assets will see their global net worth plummet. Investors urgently need to address this risk and they need to implement a strategic long-term plan to avoid the large losses the dollar’s decline will cause as well as turn its decline into an opportunity to profit as currencies rise.” 

Ulf J. Lindahl, CEO, Currency Research Associates LLC



Table of Contents

  • Introductions to Dollar’s 15-Year Cycle

  • Strategic Decisions by Investors Related to Dollar Exposure

  • Dollar’s Impact on Investors

  • Dollar is Overvalued, Why?

  • Risky Investment Climate? A Historical Perspective




Thanks to our Contributor


Currency Research Associates

Ulf@CurrencyResearchAssociates.com

www.currencyresearchassociates.com


Currency Research Associates LLC provides actionable advice on currencies, interest rate, global equity markets and selected commodities based on the firm's proprietary models and research.

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