The US dollar is predicted to depreciate another 10% next year, after already depreciating 11% in the first half of 2025.
But what does it mean for you?
Here’s what you should know:
The U.S. dollar just had its worst first half of a year since 1973, losing 11% of its value.
Morgan Stanley says it could drop another 10% by the end of 2026.
Why?
Slower U.S. growth, falling interest rates, and foreign investors dumping dollar assets.
The best-case scenario?
The Fed gets inflation under control, trade deals stabilize things, and the dollar only loses another 5-7% instead of 10%. Your purchasing power shrinks, but not catastrophically.
The worst-case scenario?
The dollar keeps falling 10% year after year. Your $100,000 savings becomes worth $70,000 in real purchasing power within three years. Foreign investors dump U.S. assets. Interest rates spike to attract them back. Recession follows
4) Do these 10 things to go private (because 70% of lottery winners end up broke and 33% declare bankruptcy)
• Add home security
• Delete all social media
• Use a 2FA on everything
• Use NDAs with everyone
• Change your address to a PO Box
• Freeze your credit with all three bureaus
• Do NOT pose for the winning check photo
• Get a new phone number and e-mail address
• Use Trusts and LLCs to protect your assets and maintain privacy
• Get comprehensive insurance coverage including umbrella policies, kidnap and ransom insurance
Lessons:
• Money is More Than Numbers: Your habits, emotions, and past experiences shape how you handle money.
• Avoid Comparisons: Don't compare your financial journey to others. Focus on your own goals and progress.
• Plan for the Long Term: Think about money in decades, not days. Long-term planning leads to better decisions.
2. Millionaire Next Door by Thomas J. Stanley
Lessons:
• Millionaires Aren't Flashy: Most millionaires live simple lives and don't show off their wealth.
• Avoid Status Symbols: Don't waste money on fancy cars or big houses to impress others.
• Live Below Your Means: Wealth comes from spending less than you earn and saving the rest.
3. Simple Path to Wealth by JL Collins
Lessons:
• Ignore the Noise: Don't get distracted by daily market news. Focus on your long-term goals.
• Index Funds are Key: Invest in index funds for steady, long-term growth. They're easy and effective.
• Stay the Course: Don't panic when the market goes up and down. Stick to your plan.