💲The dollar will only get worse

Economy, macro news:

🤩Goldman Sachs predicts continued weakening of the US dollar in 2025.

US trade policy is slowing down the economy:

1. The US continues to pursue a protectionist trade policy despite revised forecasts for tariff reductions.

2. Tariffs reduce citizens' incomes and companies' profits, creating economic uncertainty.

3. This cuts investments and affects prices, reducing the attractiveness of the dollar.

Global asset diversification:

1. Portfolios in the US are too concentrated and vulnerable to currency risks.

2. Goldman forecasts more significant yield growth outside the US, attracting investors to assets in other currencies.

3. The unpredictability of US policy drives investors towards diversification and away from the dollar.