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Five Ways to Profit From the Falling Dollar

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The U.S. dollar (USD) is on thin ice.

I say this because it's close to "rolling over."

See for yourself. This chart shows the performance of the U.S. Dollar Index since the start of 2017. This index tracks the dollar's performance against major currencies like the Japanese yen and the euro.

Notice how the dollar stopped rallying in November… lost momentum… and has since fallen 1.5%.

That's not a huge decline. But the dollar now looks like it could roll over any day now, and head much lower.

In a minute, I'll show you why… Then, I'll share four ways to profit from a weaker dollar. And Strategic Investor editor E.B. Tucker will show you a bonus way to profit in today's Chart of the Day.

But first, let's look at why the dollar is set to fall further from here.

 
 

The Federal Reserve just did an "about-face"…

It's going to put its plan to raise rates on hold.

You see, the Fed has raised its key interest rate nine times since the end of 2015. It also talked about hiking the key interest rate two more times in 2019. But it's clear that's not going to happen anymore.

I say this because Fed Chair Jerome Powell said last Wednesday that, "the case for raising rates has weakened somewhat." The "official" reason is because of Brexit, the global economic slowdown, and the trade war.

But you don't have to work on Wall Street to realize that Powell only delivered this message after U.S. stocks sold off – hard.

In other words, the Fed appears to be backpedaling because it knows the U.S. stock market is addicted to cheap money… and it doesn't want to take away the punch bowl.

In short, this is a huge deal… and one with bearish implications for the U.S. dollar.

• You see, money goes where it's treated best…

In other words, investors park money where they can earn the best returns with the least amount of risk.

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