ASR on the Dollar and regime change: FT Unhedged

Beth McCann

15th JUN. 2021

Ian highlights to the FT’s Robert Armstrong how the relationship between USD and PE multiples has been less stable than suggested (not just in the 1980s - but also in the post GFC world).  

There was a regime change in the dollar / PE multiples relationship in the late 1980’s. 

Are we having another one now? ASR would argue yes. 

The USD has been in decline since March 2020. We expect to see further weakness in the coming 12 months.


Earlier ASR research has highlighted (clients can see HERE) why loose monetary policy, loose fiscal policy and the broadening of CB mandates (to focus on full employment and inclusion, ahead of inflation control) is a change in policy regime, leading to an ongoing change in investment regime - and the dollar. 


To read the FT Unhedged column, see HERE (FT subscription may be required).  

To request regime change and / or USD research as part of a trial, please register HERE