What is Happening to the US dollar?
There is a natural desire to diversify: Janet Yellen predicted the dollar's decline as the global reserve currency - and she's not alone. Here are three ways to prepare for it in 2024.
As a result of an 8% drop in the dollar's share of global reserves in 2022, many have questioned whether the dollar's days of dominance are numbered.
In a congressional hearing last summer, Treasury Secretary Janet Yellen stated that no current currency could displace the dollar. Despite the fact that U.S. sanctions and foreign policy moves have inspired backlash from China, Russia, and other prominent countries eager to dethrone the dollar — Yellen said, “It will not be easy for any country to devise a way around the dollar.”
As countries diversify, the dollar's share of global reserves may continue to decline.
A natural desire to diversify is expected to gradually increase the share of other assets in reserve holdings of countries, Yellen said at the time when asked if the dollar's international status was declining. The dollar, however, remains the dominant reserve asset.”
For much of 2023, the dollar's share of global reserves remained flat. According to a September Reuters report, Michael Langham, emerging markets analyst at ABSN, wrote that the dollar's share of currency reserves has been falling over 10 percentage points over the past 20 years.
The dollar is expected to fall against G10 currencies this year, according to a December Reuters poll of 71 currency strategists.
You may worry — especially if you have a retirement fund — about how economic volatility, persistent inflation, and stock market uncertainty could impact your own Dollars. You can hedge against a declining dollar in 2024 with these three investments.
The gold standard
Unlike the U.S. dollar, which has lost 98% of its purchasing power since 1971, gold remains more stable over time.
You can invest with OneGold and take procession of your gold whenever you decide. This is why we encourage viewers on the YouTube channel to buy gold on a monthly basis. Use a credit or debit card and place your purchase on autopilot.
When the dollar loses value, precious metals won't be affected, so gold might just be the inflation-hedging tool you need.
Art of fine quality
Masterworks is a marketplace for trading fine art shares as you would stocks. When it launched, Masterworks users have seen remarkable returns, ranging from 9% to 39%.
With Masterworks, you can cushion your savings in the same bubble wrap as your artwork, a solid inflation hedge for the ultra-wealthy.
Investing in real estate
The real estate market is another asset class that can resist de-dollarization and generate passive income.
Over a 25-year period, commercial real estate has outperformed the S&P 500, adding stability to your portfolio. But until recently, commercial real estate has been reserved for a few elite investors.
It's easier than ever for individual investors to get access to institutional-quality commercial real estate investments - without having to do the legwork of finding deals themselves.
You can take the channel's Real Estate Side Hustle Membership and learn how to invest in real estate from the comfort of your kitchen table. The channel's investors earn 10 to 14% returns on short-term real estate loans, where the property is collateral. The course syllabus is here. You can sign up, learn, and earn on the go.
