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The Money Printer Effect

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Published 06/17/2020

What happened?

Analysts are worrying the days of the U.S. dollar’s superiority could be ticking to an end sooner than expected.

Steep predictions. The former Morgan Stanley Asia chairman is forecasting a 35% fall in value for the US dollar compared to top foreign currencies. Hello inflation.

  • The timeline? While the former chairman couldn’t pin down an exact time, he thinks this drop in value could happen in the next 2 years.
  • The cause: So far, the U.S. currency has survived a global trade war and a pandemic, but trillions in printed stimulus money could be the straw to break the camel’s back.

Stagflation crisis 2.0. Similar to what happened in the 1970s, many are worried prices could rise while our economy struggles to grow (the US economy is already expected to shrink 6.5% in 2020).

How does it affect my wallet?

Wow, thanks for the bad news, guys! Well, 35% is speculation for now, but this is a serious problem investors should keep in mind.

Hoarding cash — bad, investing — good. Don’t keep all your money in a savings account so you don’t lose value to inflation. It’s more important than ever to diversify your portfolio, while making smart investments to protect your wealth from inflation.

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