Fisher Investments’ Ken Fisher on What the Dollar Losing Its Place as a Reserve Currency Means

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher addresses recent fears that the US dollar’s position as a reserve currency is threatened. While Ken admits the percent of global trade done in dollars has declined since 2000, he says the decline has been modest and partly due to increased trust in the stability of the Euro, which was introduced the year prior.

Ken thinks these fears have re-emerged thanks to media reports of Saudi Arabia pricing some oil contracts in Chinese Yuan, but he points out that Saudi Arabia still has its currency pegged to the dollar because it trusts the stability of the US dollar more over the long-term. Overall, Ken believes the relative emergence of global trade in other major stable currencies—such as the Euro, Yen and eventually even the Yuan—is positive and a byproduct of a growing global economy and increasing faith in a variety of established currencies.

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Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice.

[TheMartinmarty]

Awesome succinct powerful summary.. Thank you all the time. Be healthy so share your wisdom with us for long period of time.

[jeffdejeanne]

Great points, not heard anywhere else!

[greganderson]

Great information. Makes perfect sense when explained. I was a bit concerned because the media, as usual, paints doom and gloom to nearly everything. Glad to hear it's not the end of world!!

[brilliantk]

Is it okay for the US to continue to consume by printing more dollars, and the world is increasingly reluctant to consume dollars? Thanks for refreshing me on the positive side.☺