USD at a 20 Year High: The Impact for US Investors

A discussion on the recent significant strength of the US dollar, potential problems it creates for US investors, how to think about addressing those problems, and the outlook for the US dollar from here, featuring Millennium Global Investments' Co-CEO, Mark Astley

Discussion Points:

02:16 - Let's look at the U.S. dollar’s remarkably strong performance in 2022. What are the driving forces behind this phenomenon?

03:58 - How has this historic USD strength impacted US-domiciled capital owners, including pension funds, endowments and foundations, many of whom have meaningful exposure to overseas assets in Europe, Japan, China and other emerging markets?

06:28 - How should we think about the problem then of managing FX risk as distinct from the other risks in a globally invested portfolio?

08:08 - When managing this currency risk, when is the right time to hedge and when is the wrong time?

11:10 - What should we expect from here? The US dollar has already experienced a serious rise. Is there nowhere to go from here but down, or can this strength be sustained?

15:20 - How can institutional investors address the problem?

IMPORTANT DISCLAIMERS: The views and opinions expressed in this content are those of Mark Astley and Abigail Cushing and do not necessarily represent the opinions of Millennium Global or any of the funds/accounts it manages or any of its Portfolio Managers. 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.

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