In 2014, the US economy improved and that led to a corresponding increase in the country currency’s value as it gained over the Euro. In recent times, there has been an increasing concern over the decline in the value of the US dollar as it struggles with its counterparts such as the Euro and the British pound.
Several factors are responsible for the low purchasing value of this currency in comparison to others. Experts have identified the following economic factors as responsible for the dollar's inability to catch up with the Pound and Euro:
1. Monetary Policy
When the dollars experienced a surge in value in 2014, it was as a result of the adoption of a stimulus program adopted by most countries in Europe, a policy the US moved away from.
Recently, though, the economy in most European countries has improved as the European Central Bank is gradually moving away from the stimulus program. The recent move by the bank has strengthened the euro against the dollar, causing the latter’s depreciation.
2. Fear of political turmoil in America
According to a Wells Fargo’s technical strategist, Smeer Samana, “this type of broad-based decline shows you that it’s really people moving away from the dollar, rather than just moving towards these other currencies.” This was the response to the dollar’s depreciation against some currencies such as the Mexican peso, the Japanese Yen and the Swedish Krona.
Trump’s administration is primarily responsible for the perceived political turmoil that drives investors away from the US and the dollars. Notable examples are the administration’s relationship with Russia and North Korea. Mr Samana concludes “If people feel like there’s greater political uncertainty … they kind of vote with their dollar.”
While this may paint a gory image of the dollars, this trend is not expected to continue for long. With the right economic policies, the dollar will gain strength and will gradually appreciate again.
While waiting for the positive policies that will revive the dollar, it is advisable that you invest your money as a fool-proof antidote to depreciation. According to best business plan writers here are the top 5 companies you may consider investing in right now:
1. Facebook (NASDAQ:FB)
In spite of the bad report against this social media giant last year, Facebook still remains one of the best companies to invest in the US. Investment analysts expect the company’s revenue to grow by a whopping 49% between 2018 and 2020, making it a wise investment choice for shrewd investors.
2. Amazon (NASDAQ:AMZN)
Amazon has created a reputation as one of the best Internet-based retailer and the best in the United States. The company is growing at an astronomical rate, a guarantee that investors will have real value for their investment. For instance, within the first nine months in 2018, the company’s operating income surged from $1.9 billion to $8.6 billion within a year.
3. Netflix (NASDAQ:NFLX)
The video-streaming company is another great investment option. A recent calculation by CNBC shows that if you invested just $1,000 in this company in 2007, that investment would have made you $90,000 richer as of January 15 2019. It is hoped that the growth will continue for some years to come.
4. Apple (NASDAQ:AAPL)
The first company to reach the $1 trillion net worth, Apple is still considered one of the best stocks to buy in the US. According to Investorplace, “Wall Street forecasts earnings of $2.78 per share. If this holds, it will represent a 34.3% increase from last year.”
5. Google (NASDAQ:GOOGL)
Google has been around for years and is unarguably one of the top companies for investors. The tech giant keeps increasing in value while its stock has continued to perform creditably well as well.
Of course, the dollar is expected to appreciate in the foreseeable future if the right policy is implemented. While waiting for the good news of the turnaround, it won’t be a bad idea to invest in any of the reviewed companies above. This may be the best a great way to fight off the slumping currency.