The U.S. Dollar is the World’s Reserve Currency. If That Changes Will it Hurt U.S. Companies?

The U.S. Dollar is the World’s Reserve Currency. If That Changes Will it Hurt U.S. Companies?


Alison Southwick: The next
question comes from Harpreet.
“I have a question about how stock prices
of U.S. tech companies [especially the FANG stocks]
might get impacted in the scenario
of the U.S. dollar weakening and losing its
reserve currency status.
Do you think this is possible?”
Buck Hartzell: The short answer is anything
is possible, but I think you’re probably worrying
a little bit too much.
For those of you out there with reserve currency
questions, the US is the world’s reserve currency,
which means other governments
keep a lot of our money.
You may have some insights that I don’t.
We have people here in Washington
who work in the Federal Reserve.
I just don’t see that changing. That’s not
anything that I ever lose sleep over at night.
We’re a bottoms-up kind of investment shop
here for how we look at investment companies
and stocks to invest in.
I put almost no thought into what’s going
to happen to Netflix or Facebook if the U.S.
dollar is not the world’s reserve
currency. I’m not worried about it.
I don’t even think about it that much and
I don’t think it’s going to have that much
bearing on any of those companies. If you
like the companies and they’re doing well hold them.
Don’t worry so much
about the reserve currency.

2 thoughts on “The U.S. Dollar is the World’s Reserve Currency. If That Changes Will it Hurt U.S. Companies?”

  1. It would depend on how it happens. If it was replaced by another currency it would have more of an impact but not apocalyptic like commentators like to pretend. It happened to England and they survived. If there ends up not being any reserve currency that possible impact would be much less severe. Being the reserve currency allows us to export our inflation world wide. So in the absence of that we would have to be more careful (laughing at Congress) or inflation would go up here in the US.

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