Transcription
Tectonic shifts are happening in the global economy today, and one of the key components reshaping the modern economic order is the US dollar. It's become a primary target of the current administration, and the policy shifts taking place to change the US dollar's role are going to have unprecedented consequences on financial markets and possibly leading to the biggest opportunities of our lifetimes.
Let's start with some context. Since the start of 2025, we've seen the US dollar weaken by 8% against the Japanese yen, by 9% against the euro, by 13% against the Swedish krona, and more recently, we've seen the dollar completely collapse against the Taiwan new dollar within the matter of a few days. One by one, currencies around the world are strengthening relative to the US dollar. And none of this is a coincidence.
Washington has made it clear that it believes the US dollar's strength and status as a global reserve currency has been one of the root causes behind the problems that the US economy faces today, like the decline in manufacturing employment along with the massive trade deficit that the US has with the rest of the world. And the theory behind this isn't completely crazy. A strong currency does make local goods less attractive to foreign buyers. Deliberately weakening the local currency is a strategy that is often used by governments around the world in an attempt to boost local manufacturing.
Donald Trump and the rest of his administration have talked about wanting to weaken the dollar for this exact reason. They argue that a strong dollar has kept a lid on US economic prosperity and that it's now time to open that lid. And it actually looks like they're doing this. The US dollar has just seen its largest 10-week decline against the euro since 2010 and seems to be breaking a large uptrend that it started in 2008. And of course, the timing of this breakdown is not a coincidence. It corresponds exactly to the moment where Donald Trump revealed his new tariff policies on April 2nd.
On the surface, he's advertised these tariffs to simply be much-needed renegotiations of trade conditions and a way for the US government to get some much-needed revenues. But there is something much bigger at play here. We believe that his tariff policies are also a deliberate attack on the US dollar's strength.
You see, over 54% of global trade is conducted in US dollars, and about 90% of foreign exchange transactions are in US dollars. This high global trade environment has given the US dollar its reserve status. This is why most global central bank reserves are in US dollars and why most large international businesses own US dollars. If all of a sudden global trade slows down as a result of tariffs, demand for US dollars will inevitably weaken. International institutions and businesses will have less incentive to actually own dollars. This is why, in our opinion, Donald Trump's America-first isolationist tariff policies do have a high risk of leading to a weaker US dollar, and a weaker dollar potentially has massive repercussions on global financial markets.
But again, most people don't actually know what to actually do about this. Luckily, our job at Bravos Research is to spot opportunities and show them to you. By the way, we're doing a limited discount on our membership this week. You will not find any other service that provides education, trade ideas, and market analysis for this low of a price. So, do not miss it.
Just over the course of the last 30 days, we've closed 13 trades, 11 of which were winners with an average gain per trade of 26.7%. We took advantage of rallies on gold, Chinese stocks, US stocks, and many more. But all of this is nothing compared to the opportunities that could come from a weak US dollar.
In order to understand the opportunities that are going to arise from this, we need to rewind all the way back to the 1800s when the Dutch guilder collapsed. This was the dominant global currency at the time, and when it collapsed, it led to a massive flow of capital towards the British pound because, at the time, the British economy was quite clearly overtaking the Dutch economy in pretty much every aspect: military and geopolitical influence along with the size of the British economy overtaking the Dutch one.
About a century later, the collapse of the British pound, which had become the world's reserve currency, led to a massive flow of capital towards the US dollar. As the United States was quite clearly overtaking Britain as the world's dominant power again—from a geopolitical and military standpoint, but also in terms of the size of the economy—the dollar was the clear replacement for the British pound.
Fast forward another century later, and although the US dollar has become at risk, there is no clear replacement for it. The euro, unfortunately, has big economic and geopolitical risks. Europe is in an indirect conflict with Russia and is massively increasing its military spending. As a result, it also has economic issues with slow growth, low productivity, an aging population, and rising levels of government debt. Not exactly a combination of factors that brings a lot of confidence to investors looking to store their capital.
The Chinese yuan is also facing geopolitical risks with rising tensions with Taiwan and Southeast Asia, and now China getting indirectly involved in the India-Pakistan conflict. And from an economic standpoint, China has a declining population which could put significant downwards pressure on its economic growth.
So we actually think that the biggest beneficiary of the current policies that are being put in place in Washington are not necessarily for any particular currency but instead are going to benefit assets that are internationally recognized to be storeholds of wealth. This is why gold prices have been going parabolic over the last few months. Because in a world where the US dollar is losing significance and there is no clear currency to replace it, investors are flocking to assets that are in direct competition with the US dollar. As this theme continues, we believe it is going to push gold higher over the coming years.
In the short term, gold has already made a massive move up, and we've sent sell alerts to all of our trades on gold because it could consolidate or even pull back over the next couple of months. But we think there will be a big buying opportunity for gold by the end of this year.
Gold is not the only opportunity. We think digital gold, or Bitcoin, is also one. Bitcoin was launched in 2009 at the heart of the great financial crisis when the US government and central bank began printing trillions in order to bail out the financial system. Bitcoin was simply born as a way for investors to protect themselves against this. And all of the big rallies that we've seen on Bitcoin have actually occurred at the same time as the US dollar index has been weakening. This is an asset that has shown time and time again that it performs well when the US dollar is weak and performs badly when the US dollar is strong. So, we happen to think that if we do see a weak US dollar environment looking forward, it will be accompanied by a very strong performance on Bitcoin.
Quick reminder, do not miss the discount that we're doing on our service this week. Our entire team at Bravos Research works day in and day out to provide the best service and the highest returns on our trades to our clients to make every penny worth it. So, click the link down below and join us.