Well, my USD bearishness didn't get much love. I had a few clients who are trade savvy and currency aware business people say that a lower USD is good for exports and maybe will hasten the return of industries that had gone overseas. I am not smarter than these clients but I may have a broader view because I see on a daily basis what happens to regular folks when their purchasing power goes down…ie the USD drops relative to other currencies and within the USA which is where they experience the loss of purchasing power. After all, for the middle class (what's left of them) and the poor, they have little to no awareness of the foreign exchange markets and how a lower USD puts foreigners in the drivers seat for buying US based and denominated assets. Your new landlord could Xi. Well, not literally but some foreigner. Foreign investment is Ok but some might recall when Japan was flying and buying up US skyscrapers by the bushel basket full and then went bust…they went bust and took a lot of assets with them hurting many others and that doesn't scratch the surface.
In a sense, the average Joe is floating on the ocean and can't see the next wave coming and it often comes unexpectedly fast from a direction that gave him/her no warning. But there are warnings to see.
Esoteric things like the Reverse Repo Market, Commercial property being upside down and likely to collapse, the hidden tax of Inflation constantly lied about by the Fed and other shills, your stagnant or inadequately rising wages on and on and on.
To simply say wake up and smell the coffee is not enough. One must educate their self with good understanding of that unseen wave's potential and harm to their life and lifestyle. In spite of the news media and financial talking heads, stocks in the USA are way over priced in part because so much foreign money is present due to a lower USD and though the top 20%, benefits because they own a majority if US Equities. The wealthiest 20% of US households own approximately 71.1% of all household wealth, which includes stocks. This includes the richest 10%, who alone own 70% of the stock market, according to USAFacts. The top 1% alone owns 54% of public equity markets. Yikes, therein lays the inequality between the wealthy and the rest of us plebes. It may seem alarmist to you, but such disparity has led to revolutions time and again.
The one thing my clients can do is ask me my take on situations but they might need to come up to sniffing out that something is afoot and it ain't good.
Yes, my savvy clients pointed out that a lower USD might help them, in fact they are convinced of it. Maybe so. But the average Citizen who, as implied above, does not participate in the stock market to any appreciable degree does not benefit from a lower USD and certainly misses out on the rise in the Equity Markets.
WHAT TO WATCH: I recommend that you watch the DXY (US Dollar Index) for continued drops in the relative value which also indicates lowered purchasing power.
WHAT TO DO: Diversify out of the USD and out of the US based financial system to a degree as well
HOW DO YOU DO THAT? Buy and hold some physical precious metals like gold, silver and platinum, stay in or buy real estate but only at a good price (prices will fall sharply soon) and at an interest rate that you can afford include property tax (the sleeping beast) and insurance and any HOA fees and/or maintenance cost.
WHAT NOT TO DO: DO NOT CHASE THE STOCK MARKET or BITCOIN for that matter because it acts like a tech stock. It is too late. Hoard some cash as dry powder and you'll get bargains later like in a fire sale when there is a rush to the exits as the herd panics. The calmly and methodically pick up the bargains while those who were greedy to the last tick pick up the pieces of their shattered accounts.
This my friends, is how I see it and you are free to bitch me out in disagreement. Killing the messanger never got anyone anywhere.
Best,
Donn Marier
DM-Your Own CFO