Ulf Lindahl, chief executive officer of A.G. Bisset Associates LLC, predicts the dollar will plunge about 40 percent against the euro by 2024. The currency manager’s reasoning is straightforward—since the 1970s, the dollar has been repeating a 15-year cycle of losses and gains, and the pattern is replaying now. To some, Lindahl’s call may seem outlandish and his reasoning overly simple. But after last year’s 9 percent slide—and with Bridgewater Associates’ Ray Dalio in September predicting a dramatic dollar drop—Lindahl’s view may not be as far out as it once appeared.
“We should see a very substantial decline in the dollar,” the 64-year-old says in an interview in August at his five-person office in Norwalk, Conn. “It has massive implications for all the financial markets,” potentially triggering a sell-off in stocks and a rally in commodity prices. Investors piled into the greenback this year, boosting it almost 2 percent as U.S. growth outpaced that of its global peers and the Federal Reserve raised interest rates.
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