What if the dollar falls sharply?

One of the consequences of the economic and monetary policies of the new president of the United States, Donald Trump, is that its currency, that is, the US dollar can depreciate in the coming months. What's more, many analysts go even further by predicting that this is a real fact that small and medium investors will have to count on to make up their investment portfolio. Up to the point that will determine your returns.

Because in effect, a weak dollar has many repercussions, not only on the economy in general, but also on your own interests as an investor. It is not limited to the buying and selling of stocks in equitiesBut to other alternative financial markets. Some are even very original, such as that of precious metals. Although, of course, it will be the currency where they will most notice the fluctuations of the changes between the currencies most contracted by operators.

If you want to know what will happen in the markets with a receding dollar, nothing better than some tips that will help you channel your operations with greater guarantees of success. It is not that it is a very unreal scenario, but it may be the one that actually occurs. In any case, it will bring you new business opportunities, some of them certainly interesting and in a certain way innovative. From emerging markets to alternative investments. In short, new forms of investment open up to you from now on.

Dollar: does it affect the markets?

A scenario of the North American currency on the rise will imply a radical change in your investment strategy from the beginning. It will be the opportune moment to close positions in some of them and open them in others. Because in effect, the levels of force are going to vary with great intensity. To the point that before it was not receptive for your investments, from now on it will be. You have to show great agility to anticipate events and in this way you can make your savings profitable with greater power.

Because if the dollar falls sharply, it will be time for you to look at emerging markets. One of the most suggestive proposals, although with some risk, is based on increasing your exposure to Russian equities. It seems that it may be one of the positive surprises of this new stock market exercise. Not surprisingly, the main economic indicators show this. To the point that it may be time for you to start this new scenario in your relationships with the world of money with your first operations.

One of the facts that underpins this new option in investment is that the oil price it will continue to rise during this year. Even with unusual force, as some famous analysts of the financial markets admit. In which case, it will favor the Slavic economy due to its heavy dependence on black gold. Where the Russian stock market could pick up this new macroeconomic scenario with strong rises. Given this, you can open positions in this international equity market.

La russian economy has beaten analysts' expectations, a drop of 0,5% was expected and in the end it was -0,2% and growth is expected for this year. These data support the trend that may be one of the financial assets to take into account for this year. With real possibilities in its revaluation and with a very important growth potential compared to other more traditional markets.

Emerging countries that can go up

Not only is Russia the nation that can benefit from this new economic situation. Also other emerging countries with a great specific weight on the international economic board. One of them is without a doubt Brazil, if it achieves a stabilization of its political system. With a very high revaluation potential and above that presented by other stock markets. It is another destination where your savings can be directed for the next few months. They are not risk in the exposures that you formalize from now on.

Other international economies that can take advantage of this scenario include some from Southeast Asia and very especially the latin americans. They can give you more than one positive surprise from these moments. Nor can you forget about the stock market in India, which for several months has been experiencing one of the best returns on equities in the world. Above large stock markets that are in the minds of large investors.

Evolution of the North American currency

All these approaches to investment can occur whenever this correlation of forces is generated between the leading currencies of the international monetary order. Because in effect, everything seems to be going in that direction. To the point that everything really indicates that the dollar it will continue to depreciate in the next few months. With a change in the investment portfolio that you have to make from now on.

In this way, the currency market will be another of the financial assets that you should be very attentive to during the coming weeks or even months. It will show an activity above the ordinary. With a more than remarkable volatility that will delight the traders. If you are one of them, congratulations because a new period is opening for you full of very strong emotions and great options to make your operations profitable in this financial market of such relevance.

Above all, you must be very fast operations that you formalize in the financial markets. Through the exchanges with other currencies of special relevance: Swiss franc, British pound or the euro itself. As a result of these actions, you will be in a position to make any kind of proposal. From the most conservative to the most aggressive of the financial markets. Of course, you will not have limitations in your approaches.

Other low dollar winners

In any case, a progressive fall in the United States currency brings other winners when it comes to financial assets where you can invest your savings. The market for precious metals It will be one of them and it is presented under different investment proposals. From traditional gold to other less conventional metals, such as silver or palladium. They are formed as one of the alternatives that you have from now on with the new dollar scenario.

Another of the mainstays is represented by the price of oil in the markets. Because it will undoubtedly be one of the financial assets that may experience the greatest appreciation during the next twelve months. Even with the possibility of approaching and even exceed the barrier of $ 70 a barrel. Not surprisingly, it is one of the great beneficiaries of the decline in the US currency. With a very direct relationship between both options.

Nor can you forget what can happen to other raw materials. Especially those linked to the main foods and that you can also give yourself more than one joy if you open positions at the moment. However, they will require a greater and in-depth knowledge of their financial markets. In addition, it will require you to raise your investments from completely different financial products than the ones you used until now.

Operations in financial markets

Of course, new opportunities open up to make your savings profitable. Some will be more or less conventional, but others will certainly start from much more innovative investment approaches. So that in this way, you are in a better position to optimize movements around the world of money. Based on the following actions that we expose you below.

1. You must make your first approximations to the currency markets. Its activity will be at levels above the usual. Although always under more modest investment approaches. As a complement to your usual investments in the equity markets.
2. The alternative markets will be some of the centers where you should look to place your money. You have enough proposals to satisfy your demand, even from the strangest financial assets that may seem to you at the moment.
3. A continuation downward in the price of the US dollar should make change portfolio from other different approaches. To the point that you have to replace all the investments you had until now.
4. In some investment funds, and to protect your investments, you will have no choice but to cover your operations with the contracted currency, in this case the euro. It is a highly effective strategy for these occasions.
5. Be very careful with more sophisticated financial products. You must know how to operate with them in a situation as special as this, with the dollar continuously correcting its positions. Only if you have experience can you open positions in these savings models.
6. You will have no choice but to look at the financial assets that are priced in dollars or euros. Because depending on this important variable, they will be more inclined to accept the challenge of your new demand. As an example of this scenario, precious metals are always listed in the first one. It will be a small signal about what you should do with your money.
7.  And finally, do not hesitate to expand to those financial markets this trend of the American currency is more beneficial. Not only the emerging ones, but even some more than exotic squares that until now you had not considered entering them.