Understanding the U.S. Dollar and Recent Fitch Ratings
We have received questions recently regarding the U.S. Dollar and countries like Brazil, Russia, India, China and South Africa (BRICS) potentially developing alternative currencies and financial institutions. While we agree that the U.S. fiscal and monetary situation has deteriorated over recent years, and it is likely that China and Russia in particular are pushing to find alternatives to the U.S. Dollar and financial institutions, we do not view this as an imminent threat to the global economy or your investment portfolio.
The U.S. Dollar dominates global trade flows and we do not expect this to change in the near term. It’s estimated that the total value of global trade in 2022 was $32 trillion. The U.S. Dollar was 88% of those trades1. That is only down from 90% in 19881. Further, a reserve currency like the U.S. Dollar must be deep enough to support such large demand, be overseen by a country that can support large current account deficits, has a clear rule of law, does not impose capital controls, and supports property rights. To us, none of the BRICs demonstrate this resiliency. As such, we believe the U.S. Dollar remains the world’s reserve currency for the foreseeable future.
We think maintaining a diversified portfolio of U.S. and International stocks and bonds is the best defense against any potential actions by these countries, which is how we have invested your portfolios. Clearly many countries throughout history have held the world’s reserve currency and lost it, but for now we think this issue is more in the “noise” category than anything. We suggest focusing more on strong financial plans and the resiliency of the U.S. economy and corporate earnings.
Additional Reading and Resources:
1-Marc Chandler, The Dollar Rules the Financial Universe. China Can’t Change That, Barron’s, March 31, 2023.
Terms and Conditions | Privacy Policy | Disclosures
Case studies are intended to illustrate the types of financial issues faced by actual clients. They should not be construed as a testimonial for or endorsement of Lineweaver Wealth Advisors. They do not represent the experience of any advisory client. Each client’s situation is different, and their goals may not always be achieved. Lineweaver Wealth Advisors, LLC, is not engaged in the practice of law or accounting. Tax information provided is general in nature and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time.
Crain's Cleveland Business is a print and online newspaper delivering local business news and information to Cleveland's business executives, which is published by Crain Communications Inc. The Crain's 2024 list may employ different methodology than described above for similar designations granted in other years. No clients were consulted and no fees were paid to determine the winners; the award is based on assets under management. Neither the participating candidates nor their employees pay a fee in exchange for inclusion on Crain's 2024 List. However, recipients may pay a fee to Crain, an affiliate, or an unaffiliated third party in exchange for plaques or article reprints commemorating the designation. The publication should not be construed by a client or prospective client as a guarantee that they will experience a certain level of results if the recipient is engaged, or continues to be engaged, to provide investment advisory services; and should not be construed as a current or past endorsement of the recipient by any of its clients. Lineweaver Wealth Advisors was ranked in the Top 25 of Crain’s of Cleveland’s annual list of Registered Investment Advisors. The award is based on assets under management in the years 2024. In 2023, Lineweaver Wealth Advisors was ranked in the Top 15 of Crain’s of Cleveland’s annual list of Registered Investment Advisors. The award is based on assets under management in the years 2023. In 2021 and 2022, Lineweaver Wealth Advisors was ranked in the Top 20 of Crain’s of Cleveland’s annual list of Registered Investment Advisors. The award is based on assets under management in the years 2021 and 2022 respectively.
Nominees in the Top 100 Magazine selections are not required to pay a fee for consideration. Individuals appearing in half and full page editorials, have paid a fee for additional exposure. Candidates for consideration are selected utilizing proprietary software. Top 100 Magazine analyzes the results before making their final selections. Financial Professionals and/or wealth managers must also met the following criteria; 1. Be registered with the SEC as a registered investment advisor or a registered investment advisor representative; 2. Have no more than 1 filed complaint with a regulatory agency; 3.Never been convicted of a felony. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the Financial Professional by any client nor are they representative of any one client's evaluation. Participants for the Top 100 in Finance appearance were reviewed in 2022, and recognized in March of 2023. Lineweaver Financial Group appeared in Money magazine in 2015, Fortune Magazine in 2016, WTAM 1100 in 2018, Forbes in 2020, Channel 5 in 2020, and Top 100 in Finance in 2023.
Lineweaver Financial Group ©
Powered by 
Virteom