Investors Be Wary: The Dollar is on its Way Out

How long can a good thing last? In the realm of finance and economics, when things just seem too good to be true for too long, it’s a near guarantee that a downturn is just around the corner. As Dawn J Bennett, host of the Financial Myth Busting with Dawn Bennett talk show and long-time money manager argues, though the strengthening dollar and the Federal Reserve have maintained an aura of invincibility for several years now, their time will soon be up. In Bennett’s eyes, the Federal Reserve has already proven its fallibility by demonstrating that its four-part Quantitative Easing strategies and two Operation Twist programs did not, in fact, result in a stronger, more expedient economic recovery. Rather, their efforts have culminated in the worst economic recovery in the last 75 years with an economy that’s actually decreased in size. What’s more,  Bloomberg reports that the U.S. annual median income is still 4.4% less than what it was in 2000, which hardly paints a picture of recovery. The economy may be performing better than it was in 2008, but that doesn’t mean it’s truly recovered, or that we can blindly expect the “good times” to keep on rolling.

dawn j bennett weakening dollar

What’s perhaps most troubling is that the Federal Reserve continues to claim its approaches are effective, and the government and the public seem to be wholeheartedly buying in. While many are quick to note  that the dollar has reached an 11-year high in surpassing the Euro, or that 8 of the 10 most profitable companies in the world are based in the United States, are these accurate ways to assess our own economic fortitude? What about the fact that the majority of these other countries are currently experiencing economic slumps? Can we really say we’ve made a spectacular comeback by comparing ourselves to others who happen to be doing worse?

Further, the fact that the Fed’s policies are driving the dollar into the ground should be somewhat obvious to both itself and our government. The principles of inflation and devaluation are covered in even the most basic of economics courses; we know that the greater the supply of something (in this case, the dollar), the more likely its value will decrease. So why has the Federal Reserve held so firm to its belief that the printing of trillions of additional dollars won’t lead  to inflation and devaluation? What’s more, while the Federal Reserve is hard at work undercutting the dollar, other countries are already in talks to make sure the dollar is on its way out, making public their desire to abandon reliance on the dollar and create a new international currency.

As Bennett sees it, the dollar will unquestionably dwindle in strength in the coming years; so the question is not whether we can reverse the Fed’s actions or thwart the ambitions of other nations, but rather how we, as individual investors, can prepare for the dollar’s demise.

 

Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.

For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com

Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.

About Dawn Bennett

Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com

She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.

She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett or dbennett@bennettgroupfinancial.com

 

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