What a declining dollar means for investors
The recent devaluation of the dollar is recalibrating the market. Watch to learn what it means for your portfolio.
AS THE DOLLAR FELL 10% throughout the first half of the year,1 talk of the end of America’s leadership of the global economy rose. Will the dollar remain the global reserve currency? And why does that matter for investors? While growing deficits and continued uncertainty around tariffs continue to make it more difficult to see the investment landscape clearly, the dollar’s position as the linchpin of the global economic order seems unlikely to change.
In the video above, Lauren Sanfilippo, senior investment strategist for the Chief Investment Office, offers context behind the dollar’s fall and why the United States’ position as global economic leader is unlikely to change. “The U.S. remains the world’s largest, wealthiest and most competitive economy,” says Sanfilippo. That combination, she adds, should continue “to drive investment in dollar-denominated U.S. assets.”
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1 The New York Times, “The Dollar Has Its Worst Start to a Year Since 1973,” June 30, 2025. CIO Viewpoint, November 2024
Important disclosures
The opinions expressed are as of 7/17/2025 and are subject to change.
Investing involves risk, including the possible loss of principal.
Past performance is no guarantee of future results.
Some of the risks involved with equity securities include the possibility that the value of the stocks may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the U.S. or abroad. Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration.
The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).
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