Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)
Twitter
Tags: Stocks

Here's Your (Surprising) Best Bet in a U.S. Default

This expert insight from Garrett Baldwin originally ran in on May 26, 2023

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Garrett BaldwinGarrett Baldwin

Dear Reader,

Investors are bouncing around like so many pinballs in a race to find safe-haven investments against the threat of a United States government default.

Gold... emerging markets... even the Swiss franc. The list goes on.

But what if they're all looking in the wrong direction?

Bucking conventional wisdom, I propose that in this high-stakes financial game, your best bet might just be the most familiar player - the U.S. dollar.

Why? Well, if we owe in dollars and suddenly there's a shortage, people are going to scramble for cash.

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.

Let's take a trip down memory lane. We'll make two stops: 2020 and further back to the 2008 Lehman Bros. debacle. Remember how those froze up the global credit system? Yet, amidst all the chaos, the dollar saw a surge in value. Interesting, isn't it?

Our last big financial crisis didn't come with soaring inflation, so interest rates didn't budge. But in a government default, rates are likely to spike and boost the dollar's worth. And to those screaming that the dollar's value could be halved overnight-I don't buy it. Conjuring up an extra $32 trillion out of thin air? Not gonna happen.

So here's my bet: the dollar will hold its own for now. And if it suddenly jumps while other assets tumble, it's a rare chance to scoop up bargains. You could snap up undervalued assets like oil while the rest of the world is panicking about the debt situation.

Let's face it - there's no other global asset ready to take the dollar's place. Maybe the euro could step up, but let's not forget Europe's debt situation is a mess, too. The Chinese yuan? It's not exactly the world's favorite currency.

Despite all the drama, the dollar still has the crown. This could speed up the process of de-dollarization but don't expect that to happen overnight. A sudden flood of Chinese yuan isn't on the horizon.

Trying to guess how the rest of the world will react is like trying to solve a Rubik's cube blindfolded. Especially when our interest rates are likely to skyrocket, sending bond prices on a wild ride.

I don't have a crystal ball, but one thing's certain: having cash on hand is never a bad move, especially when that cash is likely to be increasingly valuable.

Click the video below for the full story...

The post Here's Your (Surprising) Best Bet in a U.S. Default appeared first on Midday Momentum.

Join the conversation. Click here to jump to comments…

Garrett BaldwinGarrett Baldwin

About the Author

Browse Garrett's articles | View Garrett's research services

Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.

… Read full bio

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments


Latest News

May 26, 2023 • By Garrett Baldwin

Here's Your (Surprising) Best Bet in a U.S. Default

May 26, 2023 • By Shah Gilani

earnings
The Five Things You Need to Know Before Buying Any Stock

May 26, 2023 • By Nick Black

AI Crash Course: Basic Terminology for Artificial Intelligence Investors
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts Resource Traders Alliance

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz