We're Still Betting on the U.S. Dollar

Skeptics have been predicting the downfall of the U.S. dollar for years...

The idea gained serious traction when the BRICS countries – Brazil, Russia, India, China, and South Africa – floated the idea of a shared currency. The idea was it would rival the U.S. dollar as the global reserve standard.

Unfortunately for them, that plan is now falling apart. Brazil, which currently holds the BRICS presidency, announced last month that it will no longer pursue a common BRICS currency.

This is just the latest in a long list of failed attempts to replace the dollar.

Some economists claim U.S. tariffs or sanctions could push other countries to abandon the greenback.

But despite these theories, the data tells a different story. The U.S. dollar isn't weakening –it remains the world's most powerful and trusted currency...

The BRICS currencies have fallen sharply against the U.S. dollar...

China's yuan is down more than 12.5% since its peak in early 2022. The Russian ruble has plummeted more than 36% since mid-2022, as economic instability and sanctions continue to take their toll. The Brazilian real and South African rand have also struggled.

Meanwhile, global investors are flocking to U.S. assets. The U.S. remains the largest destination for foreign direct investment. Inflows have risen 29% since 2018.

And that dominance has major implications for your investment strategy.

Those who bet against the dollar tend to get burned. If you bought a stock trading on China's CSI Index, it would need to be up at least 14% to offset how much the yuan has fallen.

The entire index is down about 12.5% since mid-2022... making it even harder to justify owning Chinese stocks.

And with the Russian ruble down 36%, Russian stocks need to rise more than 50% just to offset the devaluation.

Most of the best investment opportunities remain in U.S. markets...

International investors know this well. Again, foreign direct investment into the U.S. is up 29% since 2018. We were the biggest destination for foreign investment at the end of 2023.

Betting on the U.S. dollar means less exposure to currency fluctuations... and a more stable foundation for long-term growth.

Despite frequent calls for the dollar's decline, it continues to strengthen. That's true whether we look at BRICS currency collapses or the performance of dollar-denominated investments.

For investors, the trend means one thing... Stay in U.S. dollar assets to preserve and grow your wealth.

Wishing you love, joy, and peace,

Joel
March 14, 2025