The Dollar Is Falling. The Dollar Is Falling

The US dollar is falling but don’t let chicken little scare you.

The U.S Dollar Index ($USDX), an index that measures the value of the USD compared to foreign currencies, fell over 9% since March 2020. Global investors have been selling the US currency over fears of poor economic conditions and rising inflation in the US.

Pick Your Poison, Trump or Biden?

US presidential elections are slated for November and according to Trump, “the stock market will drop down to nothing” if he isn’t re-elected. Reality check, If a global pandemic couldn’t make this happen, it’s highly unlikely that an election will send the stock markets plummeting to zero.

A July poll by WSJ/NBC shows 51% of respondents voting for Biden and 40% for Trump. General consensus shows a Biden victory would negatively impact stock markets, however, JP Morgan believes a Biden victory would result in a slight positive for the economy.

Are We There Yet?

We’re close… ish… not really. Several COVID vaccine developers are beginning the last testing phase before being reviewed for final approval. This phase could last anywhere between 3-6 months. 

• 160 vaccines are in development and 26 are in the human testing phase.
• AstraZeneca ($AZN) has already begun phase 3 and Moderna ($MRNA) and Johnson & Johnson ($JNJ) is expected to begin phase 3 at the end of July.

Making Big Profits in Small City Investing

Contrary to popular belief, you do not have to spend over 10 years of your life saving $200,000 to purchase your first investment property. There is an entire community of real estate investors who have built multi-million dollar real estate portfolios in less than 5 years, starting with less than $100,000 capital.

The secret is buying properties in small affordable cities where purchase prices are low and rental income is high. This allows investors to achieve higher returns and purchase multiple properties in a shorter timeline.

The “Good”, the Bad and the Ugly

Is the government forcing you to close your business? Try suing them. That’s what 30+ Texas bar owners did after the Governor of Texas gave them a shutdown order (again) amidst a surge in COVID cases.

• The restaurant industry has seen the most bankruptcies in 2020 compared to any other industry.
• Early data paints a dark picture of the restaurant industry… What’s on the menu? Bankruptcies, store closures, and higher prices.

How Would You Like to Pay for This Trillion-Dollar Bill? Cash or Debt?

Let’s not get ahead of ourselves, but we may have another shot (after several failed attempts) at a trillion dollar infrastructure bill. Let’s see how far it gets this time…

• On June 18, the Democrats introduced the Moving Forward Act, a $1.5 trillion infrastructure bill set to be voted on before July 4.
• The US bill will set aside billions of dollars for infrastructure work (i.e. roads, bridges, etc.), 5G wireless infrastructure, public transit improvement and climate change initiatives amongst many others.