Home > Business, English, General > Will we find a bottom?

Will we find a bottom?

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Can you guess what this chart above represents? To almost any investor, perhaps this says to stay away. This, however, isn’t a stock. This chart represents the downfall of the Dollar against the Euro. At the moment of this post, the value had sunken to a mere .7386 on the dollar.

I found the need to write about this, because after commenting it to a few close people, no one had an idea of how low we’d gone. The more concerning issue is a recent announcement of China divesting from the United States, which seemed to go unperceived by the general population.  Such an action could continue to pressure the dollar for years to come. Contradictory claims that their diversification of currencies won’t affect the dollar have been proven wrong by the evident decline of the dollar. Below, you can read a few articles shedding light in the situation.

China’s Diversification Won’t Hurt Dollar, Wen Says (Update5) (Bloomberg)

Dollar share of global reserves falls in Q4 -IMF (Reuters)

Dollar falls on Chinese diversification fears (Financial Times)

At the same time that the dollar is plunging, China’s economy is thriving. Investing in China is looking more attractive every day.

How can the United States regain its investment appeal? Is this a sign of a major socioeconomic downfall for the US?

Categories: Business, English, General
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