Investors have raised concerns about the increasing diversification of reserve currency and currency for international trade away from the dollar. For decades, the dollar has held its pride of place as the most reliable reserve currency owing to the size of the United States economy, its military prowess, and its stable political climate, to name a few advantages. However, with the global financial crisis, unrelenting debt levels, and imbalances between tax revenues and spending, critical questions by stakeholders in the economy have been raised. Fragasso Financial Advisors has attempted to cool the raging embers and tempers of investors with its timely blog post which one can read here.
Following the worries associated with the dollar’s weakening position and the spike in inflation, Fragasso has sourced, curated, and published a well-researched input to this dilemma on its website. The blog post by the knowledgeable senior investment analyst of Fragasso Financial Advisors presents a detailed response to these pressing questions, covering the dollar’s steady decline over the years, the reasons for such, and an encouraging conclusion.
According to the blog post, the growing importance of the Chinese renminbi, Japanese yen, and the euro is a result of pressures from other world powers such as China and Russia to undermine the U.S. dollar and weaken its economy. However, in the midst of these, the author assures readers of the safety of the dollar as compared to other currencies by identifying the loopholes in the aforementioned currencies.
While stringent capital and exchange controls are the order of the day in China, the different money cultures, and fiscal policies of the eurozone governments destabilize the possible establishment of the euro as a reserve currency. In addition, in the must-read blog post, the relatively smaller sizes of Japan and the United Kingdom create similar problems as with the United States and the dollar. The blog post finally concludes with the roles international stocks and bonds play in currency diversification.
For more information, please visit https://www.fragassoadvisors.com/the-dollars-changing-role-in-portfolios/
About Fragasso Financial Advisors
Fragasso Financial Advisors, Inc is a Pittsburg-based independent, employee-owned, primarily fee-based investment management and financial planning firm established in 1972. A Pittsburgh fiduciary advisor, Fragasso seeks to make optimum recommendations for its clientele through unbiased methods and a cultivated interest in seeing clients’ assets grow. The firm represents over 2,000 households, consisting of individuals, families, businesses, institutions, and nonprofit organizations.
Investment advice offered by investment advisor representatives through Fragasso Financial Advisors, a registered investment advisor.
Fragasso Financial Advisors
610 Smithfield St #400
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Facet Mail journalist was involved in the writing and production of this article.