Frank Trotter: Banker Says That USD is Likely To Decline Against Other Currencies & Gold
Frank Trotter is the Vice President of Everbank, which is an exceptional bank because members can hold different currencies in their accounts. In this interview, he gives his picks on the best currencies to hold at this time, which are largely currencies from commodity rich countries. At Everbank, they think the dollar’s strong trend against other currencies is likely at, or close to an end.
The decline of the US dollar may be slightly delayed by the likely .25% FED rate hike in December of this year, which may temporarily bump up the US Dollar. The fact that the Euro hasn’t gone down from the beginning of the year suggests that people are largely done using US dollars as a safe haven, and will probably start investing in other currencies.
On a worldwide scale, Frank thinks baseline inflation will continue to pick up a little bit, but not get out of control. To get hyperinflation, it requires more lending from the private sector- which means more confidence in business and personal lending. Debt level in governments has been substantial but is not a big enough percentage to cause hyperinflation.
As for gold- since 2000 it has outperformed all other asset classes except for some of the smallest ones. This is likely to continue, especially in a low interest rate environment. Gold appeal is broadening again, and it should continue to firm up but probably wont go to the moon unless there is a crisis that drives it there.