by Robert Ross
The U.S. dollar is down more than 10% year-to-date, marking its worst start to a year in over 50 years.
When the dollar weakens, two things tend to happen…
1. Foreign capital rotates into U.S. assets to take advantage of the currency discount.
2. Scarce, inflation-resistant assets outperform as investors hedge against debasement.
A weaker dollar disproportionately benefits small cap stocks and cryptocurrencies – two of the most sensitive asset classes to liquidity flows.
Over the short term, we’re stretched – both technically and sentiment-wise. But the medium-term thesis is clear: fiscal dominance means more spending, more borrowing, and more liquidity.
That’s bullish for risk assets – especially those that benefit from a declining dollar and increasing liquidity.
So what’s your move?
1. Stay long core dollar-hedge assets like BTC, ETH, and gold.
2. Lean into U.S.-focused small caps that are beginning to outperform large caps.
3. Watch the bond market – if yields stop rising despite more debt issuance, that’s a sign fiscal dominance is fully priced in and risk-on can resume.
Source: Total Wealth
https://dailytradealert.com/2025/07/18/ ... portfolio/
