Right now the dollar is strong relative to other currencies thanks to the action of Central Bankers around the world. With the recent drop in headline unemployment to 5%*, will the “data-dependent” Fed finally raise rates for the first time in almost 10 years, making the dollar even stronger? Or, will they find more “concerning” data to justify a continuation of ZIRP (Zero Interest Rate Policy) or go even a step farther and adopt NIRP (that’s Negative Interest Rate Policy, meaning a lender would have to pay you to take their money) as Yellen stated last week would be an option “on the table”?
As Yogi Berra said, “It’s tough to make predictions, especially about the future.” So this month’s Perspective highlights an opportunity here and now, thanks to the strong U.S. dollar: “discounted” foreign real estate.
Even if retiring overseas isn’t an option you would consider, perhaps a vacation to one of the countries where your Dollar goes farther as highlighted in the month’s Perspective is in your future?