September 26, 2022, 12:59 pm EDT
The Dollar is the King
The surging US dollar becomes the headlights new when other currencies like British Pound, Japanese Yuan, Euro, and all other currencies are plunging significantly. We mentioned this situation in the past few months (05/05, 08/22).
However, the US dollar is simply skyrocketing to the sky continuously with parabolic actions. It describes the pressure the whole world faces. Inflation, rising rates, and most importantly, the potential wars that may involve nuclear weapons. It threatens investors to allocate their assets in a highly secure place: the dollar.
The trouble comes to both US and the rest of the world. Please note that the currency markets are the largest trading platform than the stock markets, bond markets, and commodity markets combined. Therefore, the investment theme is set to “Dollar is the King” due to many uncertainties.
It is reasonable for individual traders or investors to gear strategy toward “conservative mode” or survival mode by raising cash levels and staying away from risky assets.