Unwinding the Dollar short-squeeze?15 Apr 2020 21:10
Many economists think that not only has the $ been overvalued for some time but that the Covid-19 liquidity crunch has exasperated the problem. Rural America is about to get hit hard by Covid-19 and Trump is going to spend much, much more on his rural voter heartlands. The value of the $ is likely to come under pressure and devalue; which will make any $ dividends worth far less in £s.
Similarly, the € is going to come under pressure as the Eurozone grapples with the fallout from Covid-19 - expect it to lose value against the £ as well.
So, to me, £s are good to hold. My 2.35% Gilt ends early next year. I know deflation is your friend if you hold cash in a zero interest environment, but I am battling to see where next years monies are going to come from.
Maybe I should call myself Captain Tom and go on Just Giving - he has just hit £9m for the NHS Charities Together.