So most of us trade and make at least a part of our money in dollars, meanwhile the greenback gets printed to infinity and beyond and loses value. What do you think, which FIAT currency will keep the most of its value?
My guess was the Swiss Franc but that has changed. As the SNB is having losses the federal budget will plumet. Followed by money printing to make up for it. So what is your guess?
The problem with basing decisions/ expectations on the governments printing money (because of X, then Z should happen) , is that the market will whatever it will do, because people can stay irrational much longer than one can stay liquid.
Therefore, it is important to keep in mind that
majority of people still perceive USD as the “reserve” currency, so be careful with the USD because there are number of potential scenarios that could happen.
The theme with printing money has been now dragging forever, so many people got burnt, so if you want to hedge your US dollar account, simply look at other currencies charts (including gold/silver), say weekly or monthly timeframe, and let the charts guide you.
On a side note, for example, Jim Rogers is brilliant investor, and he has been bearish on the US economy for decades, his hypothesis seems rational, yet the market just goes wherever it goes regardless of our hypothesis / expectations.
