The spectre of dollar doomsday still looms

IN 2019, I wrote a column about the coming “dollar doomsday scenario” in which a fundamental shift in globalisation and towards a post-Bretton Woods system would lead to a fall in both the value of the US dollar and dollar assets. This would raise bond yields, as well as the price of gold and various foreign currencies.

And here we are. The S&P may rise and fall on President Donald Trump’s daily mood swings, but the die for a new era has been cast.

While I have never been great at predicting the timing of big market shifts – as a child of immigrants, I tend to de-risk too early – I do have a strong world view. I hold fast to the idea that the entire paradigm for investing is changing, and that rebalancing away from the US market is important. This will be the case with or without a trade war.