The Russian media are under illusion that the American economy is on the verge of collapsing; Elon Musk is just a loser; and Donald Trump is the Kremlin’s marionette. The sore point in this story is the US dollar which is nothing more than a candy wrapper as the Russian media believe. The US national currency is so useless that even the American investors do not want to buy it.
Some Russian experts came to this conclusion based on the reports of the US investment funds that put their money into foreign currencies. The investment volumes increased significantly on the back of the greenback’s fall against other major currencies. Oddly enough, the fall was registered starting from early 2017 and it came in at 12%. But on a two-year basis, the pace of decrease is not so significant. To compare, the Russian ruble is capable of plunging by 11% in merely one day. Anyway, some investors hurry to benefit from the greenback’s weakness. “Foreign investments tend to do better when the dollar is weak,” said Jack Ablin, chief investment officer at Cresset Wealth Advisors. “That's because when you invest in foreign stocks, you're actually buying two things — the foreign equities, but also the foreign currencies needed to buy them,” he added.
At the same time, investors should bear in mind that they can benefit from the cheap greenback only if they avoid potential risks. So, they need to focus on the companies that are registered abroad and their profits will not shrink if the dollar declined further.
