Prospects of Dollar Depreciation in the COVID Recovery & Impact on Asset Classes

February 17, 2021 | Ben Mohr, CFA, Director of Fixed Income, Managing Partner, Colleen Flannery, Research Analyst, Evan Frazier, CAIA, Research Analyst, U.S. Equities, David Hernandez, CFA, Senior Research Analyst, Non-U.S. Equities

As vaccine distribution continues in full force and the global economy’s recovery from the COVID pandemic gains momentum, investors are concerned about depreciation of the U.S. dollar and how this phenomenon might affect various asset classes within a portfolio.

In this paper, we examine the mechanics of dollar depreciation and its subsequent impact on traditional asset classes. We begin by exploring the macroeconomic factors that drive dollar strength or weakness and then examine the impact of dollar depreciation on the fixed income, U.S. equities, and non-U.S. equities asset classes both by covering the potential effects of a stronger or weaker dollar and by assessing historical performance.

Read > Prospects of Dollar Depreciation in the COVID Recovery & Impact on Asset Classes

 

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