Will the strong dollar continue to spook markets?
by Robert White, CFA — Portfolio Manager
— At times such as this it is important to remember that the global economy is cyclical
We are living in a dollar-dominated world, a fact most famously captured by John Connally, President Nixon’s Treasury Secretary, who once told a group of global finance ministers “the dollar is our currency, but it’s your problem”. Students of economic history will be aware of the disruption that a strong US dollar can cause, however, at times such as this it is important to remember that the global economy is cyclical, and such periods eventually do pass.
- Global equities returned 4% last week
- Developed markets saw positive returns whilst emerging markets were a mixed picture with China notably seeing a large decline
- Brent crude oil rose 2.4% last week to $95.7 a barrel
- Gold fell 0.8% last week to $1644.9 per ounce