3 Analyst-Approved Strategies to Capitalize on a Weakening US Dollar (USD)
Dollar's decline? Your gain. Top analysts reveal three tactical moves to turn currency weakness into serious profit.
Strategy 1: Crypto Hedging
When the dollar tanks, digital assets surge. Bitcoin and Ethereum become go-to safe havens—outperforming traditional stores of value as fiat crumbles.
Strategy 2: Commodity Plays
Weak dollar means stronger commodities. Gold, silver, and oil prices spike—creating prime opportunities in both physical assets and related equities.
Strategy 3: International Exposure
US companies with heavy overseas revenue get an automatic boost. Their foreign earnings convert back to more dollars—a built-in currency tailwind most investors completely miss.
Because nothing says 'financial wisdom' like betting against the world's reserve currency—until it suddenly bounces back and wrecks your portfolio.
Analyst Weigh In: How Can You Profit From a Weak US Dollar?
1. Own Non-US Assets, Especially European Financials and Telecoms
According to Marko Papic, chief strategist at BCA Research, owning non-US assets, especially European financials and telecoms, could be the best way to make the most out of the weak USD. Per a Bloomberg report, Papic suggests that investing in China and Europe, or regions with a massive upside, could help investors extract the most profits out of the current situation.
Papic told Bloomberg
2. Opportunities in Emerging Debt, Currency Activities
Another surefire way of making more profits during a weak USD phase is through investing in equities in emerging markets like Europe. Per Andrea DiCenso, portfolio manager and strategist at Loomis Sayles and Co., investing in emerging market debts denominated in USD or euros can also offer lucrative returns in the current scenario.
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3. Invest in UK, Australian Bonds
Per Kristina Campmany, senior portfolio manager of macro alpha strategies at Invesco, making active investments in the UK and Australian bonds can bear fruitful results. The company later shares how diversifying into international fixed income regimes can help extract credible profits in times of a weak US dollar.
