Shorting The Dollar Is The Wrong Debasement Trade

The debasement trade’s dollar problem

The debasement trade has been a dominant market theme for years: persistent fiscal deficits, inflation and monetary expansion erode fiat purchasing power, pushing investors towards gold, commodities and crypto, and away from the dollar.

JPM argues the dollar-demise narrative is overstated. Hard assets can continue to benefit from debasement without the USD collapsing. In a world of global inflation, the dollar’s real-yield advantage may make it one of the better-protected fiat currencies.