© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - Investors: Act On ‘Double Edged Sword’ Strong Dollar Environment
Posted 19th January 2015

Investors: Act On ‘Double Edged Sword’ Strong Dollar Environment

Despite the Swiss Franc grabbing the headlines recently, the US dollar will continue to make gains over other major currencies in 2015, says deVere Group strategist

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Investors: Act On ‘Double Edged Sword’ Strong Dollar Environment
Image

Investors: Act On “Double Edged Sword” Strong Dollar Environment

Despite the Swiss Franc grabbing the headlines recently, the US dollar will continue to make gains over other major currencies in 2015, says deVere Group strategist

Investors must factor-in the impact of the new era of a stronger dollar into their investment strategies, according to a leading global analyst at one of the world’s largest independent financial advisory organisations.

The comments from Tom Elliott, International Investment Strategist at deVere Group, which has US$10bn under advice, follow a generally sustained dollar surge throughout 2014 and into 2015.

“Despite the Swiss Franc grabbing the headlines, on account of the ending of the CHF 1.20/Eur peg, the US dollar will continue to make gains over other major currencies in 2015,” said Elliott.

“It is difficult to see the end of the dollar rally as the Federal Reserve has signalled it will raise interest rates this year – unlike the ECB and the Bank of Japan – and investors, typically, pile into whichever currency is paying the best short-term rates.”

“In addition, and amongst other factors, the dollar’s ascent is driven by stronger than expected US economic growth compared to that of other major economies (such as those of China, Japan and the eurozone), and by the rapidly shrinking American current account deficit.”

He added: “Investors need to get used to the new stronger dollar era and they should respond accordingly to this shift.

“As ever there will be winners and losers.  I would suggest that those who need to rebalance their portfolios most urgently are those with significant exposure to stock markets and currencies of countries with considerable current account deficits, as capital repayments and interest will become relatively more expensive.”

Investing in small and mid-cap US-focused stocks and global consumer goods companies with strong US exposure would be worth considering at this point, says Elliott.

“In the longer term, investors could look to make use of the strong dollar by re-investing dollar cash into weaker currencies. Core eurozone stock markets and selected emerging markets could offer long-term value opportunities.”

As ever, investors need to bear in mind that reassessing portfolios is an essential element of risk reduction, Elliott said, adding that, as such, it is now worth taking advantage of the strong dollar by reinvesting accumulating dollars into non US assets.

“As with any shift in the investment environment, the stronger dollar is a double edged sword for investors – there are challenges and opportunities.  However, I am optimistic that it will, overall, present plenty of abundant opportunities for savvy investors worldwide and be generally positive for the wider global economy.”

Categories: Innovation


You Might Also Like
Read Full PostRead - Eye Icon
One Sheldon Square Acquired for £210 million
Finance
15/04/2015One Sheldon Square Acquired for £210 million

British Land has completed the acquisition of One Sheldon Square, Paddington Central, for £210m from the Employees Provident Fund, Malaysia.

Read Full PostRead - Eye Icon
Financial Inclusion Should Be High on the Conservatives’ Agenda
Finance
01/06/2015Financial Inclusion Should Be High on the Conservatives’ Agenda

Prepaid card industry expert Helen Child believes the re-elected Conservative government should drive change to ensure basic affordable financial services are available to all.

Read Full PostRead - Eye Icon
2018: £30m invested; 5 exits; £600m of deals. What’s coming to UK small business in 2019?
Finance
04/02/20192018: £30m invested; 5 exits; £600m of deals. What’s coming to UK small business in 2019?

2018 was a year that confounded predictions. We had predicted a year where Brexit and general uncertainty over slowing global growth might cloud events and perhaps dampen investment appetites.

Read Full PostRead - Eye Icon
Is Buy-to-Let a Good Idea in 2023?
News
16/08/2023Is Buy-to-Let a Good Idea in 2023?

For generations, property investment has been a go-to choice for individuals seeking a passive income stream, regardless of economic fluctuations. The onset of the COVID pandemic shed new light on this age-old strategy, showcasing its potential as rental costs

Read Full PostRead - Eye Icon
Aesthetics Clinic Secures Success!
Innovation
08/10/2021Aesthetics Clinic Secures Success!

The advent of new and exciting procedures has encompassed all walks of the medical world, and it is top providers who ensure they offer these services. None is finer than the team behind Dr. Katie Clinic. It has achieved the remarkable under the leadership of

Read Full PostRead - Eye Icon
Top places to find skilled specialists for your startup: React developers for hire
News
18/04/2023Top places to find skilled specialists for your startup: React developers for hire

You’ve just decided to hire React developer talent for your cutting-edge project. You’re brimming with excitement, but there’s a problem: where do you find these elusive experts to make your vision a reality? Fret not, fearless leader, for we

Read Full PostRead - Eye Icon
Zillow Group Acquisition of Trulia
M&A
Read Full PostRead - Eye Icon
Ones to Watch for 2016: The Best Boutique Accounting Firm
Legal
06/06/2016Ones to Watch for 2016: The Best Boutique Accounting Firm

Vision Consulting is a boutique firm of chartered accountants and registered auditors set up to service the business needs of their clients.

Read Full PostRead - Eye Icon
Best Practices to Minimize VAST Error Codes in Video Advertising
News
11/12/2023Best Practices to Minimize VAST Error Codes in Video Advertising

The landscape of digital advertising is witnessing a monumental shift, propelled by the dynamic and immersive world of video advertising. In this industry, the video ad serving template (VAST) is a pivotal framework for managing the seamless delivery of video



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow