The Implications Of A Stronger US Dollar

us dollar currency strength concerning chart image april year 2021

Much of 2020 saw the US Dollar weakening versus other currencies. So far in 2021, that trend has completely reversed with the greenback making higher highs through late March.

A stronger dollar has implications for many other asset classes from small cap stocks to commodities to interest rates.

In today’s video, we’ll break down the traditional relationships between the US Dollar and other asset classes and discuss how investors should think about a stronger dollar environment further into 2021.

– Why the stronger dollar environment and rising interest rates suggest very different investment conditions than in 2020

– Why a stronger dollar tends to be better for small cap stocks, and worse for non-US stocks and commodities

– How the US Dollar does not have a perfect relationship with other asset classes, but rather should be thought of in terms of headwinds and tailwinds

One Chart: $DXY US Dollar Currency Index [VIDEO]

Twitter:  @DKellerCMT

The author may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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