Strong Dollar Trend Will Continue, Principal Asset Management Says

The video discusses the impact of a strong U.S. dollar on global markets, highlighting its correlation with U.S. policy rates and its effects on emerging markets, particularly in Asia. It forecasts currency stability in 2023 and explores investment opportunities in mid cap stocks and fixed income markets. The potential impact of U.S. midterm elections on stocks is also analyzed, with a focus on the benefits of a divided government for investors.

What is the expected trend for the U.S. dollar into early 2023?

• It will fluctuate unpredictably.

• It will weaken significantly.

• It will remain strong.

• It will lose its global dominance.

Which region is highlighted for its resilience and potential opportunities in emerging markets?

• South America

• Europe

• Africa

• Asia

What is the expected trend for global currencies in 2023?

• Rapid depreciation

• Rapid appreciation

• Stability

• Extreme volatility

Why are mid-cap stocks considered well-positioned compared to mega-cap tech stocks?

• Higher risk

• Greater international exposure

• Lower valuations

• Higher valuations

What is a key advantage of U.S. mid-cap stocks?

• International focus

• Domestic focus

• Low liquidity

• High volatility

What is a potential concern for fixed income investors in 2023?

• High inflation

• Recession

• Currency devaluation

• Interest rate cuts

What is the potential impact of a divided U.S. government on the stock market?

• Higher taxes

• Increased volatility

• Reduced political uncertainty

• More regulation