How Does the Strength of the Dollar Affect Real Estate as an Asset Class?

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In this video we talk about the recent strength of the US Dollar, at least vis a vis popular Dollar indices such as the DXY, the causes of the strengthening, why it confounds investors as it has an opposite effect on the Treasury's otherwise inflationary policies and how it affects real estate as an asset class.

We first dive into the recent weakening of the Japanese Yen, which recently crossed 130 Yen to 1 USD due to Japan's yield curve control policy. We talk about other major reserve currencies like the Euro also weakening and getting close to parity (1:1) with the Dollar. We explain how the other major reserve currencies are all in a bad spot, like the Dollar, but the Dollar's strength is explained by the fact that the Fed currently appears to be the most hawkish of the bunch.

However, will the Fed be able to maintain its hawkishness and really raise interest rates (much) and reduce the balance sheet (much)? Or will the Fed cave at the first hint of recession or a stock market swoon, and be routed into following the Bank of Japan's policy of yield curve control, or perhaps something less drastic to start?

We discuss all this and more in this economics and real estate update. Please leave us a comment below if you have any questions, or have anything to add. Thank you!

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Hauseit Group LLC, Licensed Real Estate Broker
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