Commentaries

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Getting ready for the dollar’s fall

It just won’t go away, this needling worry about the U.S. dollar losing its coveted top-dog status.

No matter that there are plenty of reasonable arguments to support the dollar as the world reserve currency — namely there’s just no alternative — for perhaps decades to come.

Yet, in a world where once-rock-solid assumptions quickly turn to dust, investors should keep an eye on the dollar since changing perceptions are chipping away at its cherished status as currency to world.

Much of the debate so far this year has centered on creating an alternative to the U.S. dollar, championed by China and Russia as a way to wean the world off its dependence on the U.S. as well as buffer individual nations against the missteps of those in developed world. Most recognize creating a new currency will take years and the chances of an existing currency, like the yuan, usurping the dollar anytime soon are remote.

Should I be short London property?

Has London’s residential property market bottomed out?

This question has a particular resonance for my husband and me. We are in the middle of selling our London flat. So, unless we buy again immediately, we will be short London property.

Over the longer term, British, and especially London, residential property has been a spectacular investment. We can thank strict planning laws, tax advantages to home ownership and the wealth of the City.

Key support in Treasurys holding

Despite momentum toward higher yields, the key support level of 4% on the 10-year Treasury note is still holding after two attempts to break through. A breach of that level could ignite another round of selling with a potential added push from mortgage investors who need to shed long-term securities like Treasurys to hedge their holdings in a rising rate environment. 10-year currently around 3.95%, down slightly from the 3.99% yield paid when the note was reopened Wednesday.

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