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Everyone loves the Trump Bump but that’s not the only reason the stock market is going up. The US dollar has skyrocketed and foreign countries are buying the dollar and some of that is ending up going into the stock market. And sure if you live in Europe vacationing in the US is cheap, but we all know the dollar can't keep going up forever.

In fact, they say when you see a big shift like this it sometimes marks a high. I did tons of FX for Sheikh Mohammed bin Rashid Al Maktoum’s Dubai Holdings at my currency operation on the CME floor where we’d roll his currency option positions when they let them expire, but this is different. While the dollar is still top dog there is a lot of competition that didn't exist 20 years ago.

Like I have always said, I am not an economist, but with the US debt clock nearing $37 trillion, one has to wonder if we have already gone beyond the point of no return? So I searched for stories on the dollar and came across this story from the World Economic Forum which I think is very informative:

(Here’s the link for those who prefer it)

Why the US dollar will be indispensable as the world's reserve currency – until it’s not

Jan 23, 2025

• The US dollar is at a near-record high, but its future role as the world’s reserve currency continues to be questioned due to financial fragmentation and global debt concerns.

• US borrowing trends, challenges from other currencies – traditional and digital – and the burden of US dollar debt on developing countries all raise questions about ongoing dollar dominance.

• An expert panel at the World Economic Forum’s Annual Meeting 2025 in Davos expects US dollar primacy to continue for the foreseeable future, but gradual diversification could necessitate greater global collaboration in the years ahead.

I would read the links within the story. I have no idea when the dollar will fall, but that is what I suggested over a year ago by adding some crypto exposure to your portfolio — and if you did you have already seen a jump in those positions and I don't think it's going to stop and nor is Musk and Trump going to stop pushing that theme. Like I said I am not an economist, but my street smarts tell me there will be a time when you will look back and say, I should have added some exposure, if not already.