1/ US Dollar has been the formally World’s Reserve Currency since 1944, but there’s an increasing risk that this may not continue forever.
It might surprise Americans but there were other reserve currencies before USD. Here’s a chart with history
What does this mean for you
2/ Ray Dalio has talked about this extensively in his interviews and in his book “Changing World Order”
He believes as China becomes the largest trading partner in the world, Renmibi might become the World’s reserve currency.
youtu.be/Wqjxyk4GMts
3/ A recent development in this area has been BRICS countries coming together to discuss a new world reserve currency to challenge the US Dollar.
The new reserve currency may be based on basket of commodities such as Gold, Silver, Copper etc.
markets.businessinsider.com/news/currencies/dollar-dominance-russia-china-rouble-yuan-brics-reserve-currency-imf-2022-6
4/What should I do about it?
Diversify your portfolio.
Consider investing other assets not correlated to dollar.
Gold, Bitcoin etc may be good bets.
Invest in stock markets across the globe - ETFs such as iShares MSCI China or Emerging Markets can give you the necessary exposure
5/ Is this the right time?
I had earlier written about using “Portfolio Rebalancing” as a way to “Buy Low and Sell High”.
Dollar has been shooting up against other currencies. This may be a perfect time to Sell High and gradually start DCAing your way out of the dollar
twitter.com/riteshchopra/status/1481115494597943296?s=21&t=602cdZMb76sT4Crda7zziw
