Dollar Damage: What's the Cost?

In this episode of the Macro Matters podcast by Millennium Global, we are joined by Stephen Jen, CEO and Co-CIO of Eurizon SLJ Capital and former economist for the IMF and Morgan Stanley. He chats with Mark Astley, Co-CEO of Millennium Global Investments, about the remarkable strength of the US Dollar, the drivers and historical parallels of these record moves, where the dollar goes from here, and the risks to the global economy and to investors’ portfolios that need to be addressed.

Discussion points:

01:28 - The US dollar has been on an absolute tear, having rallied for 20 months from its Jan 21 lows. It is now at a new 20-year high and is considered to be broadly 20% overvalued. How did we get here? Can we draw any lessons from history as to how we arrived at these levels?

08:08 - What is the outlook for the USD today? Are we close to a turning point, or do we have further to run? What is the impact of petrodollars? How does Europe’s energy crisis factor? And what on earth is going on with the UK?

16:50 – What are the consequences of a strong dollar? What are some of the big risks that investors should be thinking about in this environment? Is FX intervention perhaps back on the table? What can investors do to be better protected and prepared?

Assets under management as of 30 June 2022 are a combination of USD 26 238 million in notional AUM for unfunded managed accounts and USD 122 million AUM in funded vehicles. The views and opinions expressed in this webinar have been prepared for discussion and information purposes only by the presenters, Mark Astley and Stephen Jen, and do not necessarily represent the opinions of Millennium Global’s Portfolio Managers or Research Professionals. The value of any investments may fall as well as rise. This information is intended for Professional Clients only. Millennium Global does not target retail clients. This information does not constitute an offer to buy or a solicitation of an offer to sell and does not constitute an offer or solicitation in any jurisdiction in which such a solicitation is unlawful or to any person to whom it is unlawful. For further information please see Important Disclaimers on https://investments.millenniumglobal.com/marketing-disclaimers