The Weekly: A few thoughts on the greenback
Jul 1, 2022
Welcome to The Weekly, where our team shares a few thoughts to take you into the weekend.
To our readers, Happy 4th of July Weekend! The 4th of July marks our independence from Great Britain in 1776. While it would take a few more decades for the U.S. to establish the dollar via the “Mint Act” of 1792, our currency is something worth diving into this week.
A few thoughts on the greenback
Yes, inflation is at 40-year highs and consumer sentiment is at record lows, but against all odds, our resilient dollar has steadily risen to 20-year highs. Amidst global turmoil, investors have flocked to the safe-haven currency: the mighty US dollar. The result is a strong buck relative to other currencies worldwide. Amidst stateside erosion, the dollar’s value is growing abroad, appreciating 22% against the Yen and 15% against the Euro. In short, a strong dollar makes American products more expensive overseas. It’s somewhat of a silver lining: for American consumers battling rising prices because of stubbornly high inflation, foreign goods and services appear comparably cheaper.
The implications of such a strong dollar are far-reaching. Countries that hold American debt, many of which are emerging economies, are now paying a premium as the cost of their liabilities increases relative to their previous payments.
In recent weeks, American companies that conduct significant business overseas have lamented that the strong dollar is eating away at profits. Several large companies including Microsoft, Salesforce, and Costco cried foul at the robust dollar. Furthermore, for those with international manufacturing plants, an asymmetrical exchange rate may cause corporations to retire operations in the U.S. in favor of manufacturing plants in countries where costs are now cheaper.
Macro worries aside, for American consumers who recently canceled a cross-country road trip due to high fuel prices, maybe now is the time to take an international vacation instead. Airline prices may be up, but doesn’t a $5 Tuscan ribeye and a $3 Chianti sound enchanting?
In case you missed it
Titan's in the media
- Our crypto analyst, Gritt Trakulhoon, is featured in Business Insider discussing his approach to crypto investing during a bear market
- Gritt gives his two cents on stablecoin, Tether, in a Forbes article: “Stablecoin Market Crash: Hedge Funds Shorting Tether, Regulation Is Coming.”
Have a great weekend!
Titan Team
The above content and projections are the opinion of the authors. Any conclusions or takeaways are their own. This should not be considered as investment advice. Investing involves the risk of loss and returns are not guaranteed.
Cash Management
© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.
Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.