TL;DR
The US stock market decline is worse than reported due to the falling dollar; diversification into other currencies and assets like gold becomes crucial for preserving wealth.
Story
The dollar is tanking, and your investments are worse off than you think. Mainstream media reports focus on dollar-denominated losses, but the real damage becomes clear when considering global currencies and gold.
Imagine a sinking ship. The US dollar is that ship, and your investments are tied to it. While everyone’s panicking about the water level on deck, the real problem is a massive hole below the waterline.
Here’s how bad it is:
- The S&P 500: Down 10% in dollars. Down over 18% in Euros. Almost 30% less in gold.
- The Dow Jones Industrial Average: Down 6% in dollars, exceeding 15% in Euros, and a 25% drop in gold.
- The Nasdaq Composite: A 15% loss in dollars becomes 23% and 33% in Euros and gold, respectively.
This situation mirrors historical crises like the 2008 financial meltdown. Just like back then, a seemingly stable system is crumbling under the weight of its own excesses.
What’s the takeaway? Diversify. Now. Don’t put all your eggs in one sinking basket. The dollar’s decline is a wake-up call.
‣ YTD: Year-to-Date, meaning the change from the start of the current year. ‣ S&P 500: A stock market index tracking the performance of 500 large-cap US companies. ‣ Dow Jones Industrial Average: A stock market index that tracks 30 prominent companies. ‣ NASDAQ Composite: A stock market index with a strong focus on technology companies.
Advice
Diversify your investments into assets like gold and foreign currencies to weather the dollar’s decline and protect your wealth.
Source
https://www.reddit.com/r/stocks/comments/1k0y5t2/due_to_the_plummeting_dollar_the_markets_are/