00:00Does this moment, when you think about the primacy of the dollar, feel notionally different than those?
00:06Look, dollar dominance, I always come back and say, well, where else are you going to go, right?
00:12So start with that.
00:14And, you know, you think about the reserve currency, you're looking for stability, you're looking for strong economies, you're looking for a trust.
00:21You have to have a free-floating currency, capital, you know, you can't have a lot of capital controls.
00:26So I don't think there's a question about the dollar dominance.
00:28I think there's a question about how much it gets chipped away, right, and you definitely see that.
00:33And you see that, and honestly, I actually think there's a lot of discussion about how tariffs and can you trust the U.S. has impacted it.
00:40But I actually go back to, in talking to some central banks, you know, when Russia invaded the Ukraine and the U.S. froze assets of Russia and U.S. dollar, there was this, oh, this could be us.
00:53And so I actually think it started a little bit there where people said, okay, we need to start to diversify this a bit.
00:59And then you've obviously had the comments on, you know, how can we trust the U.S. in how they behave in certain ways.
01:09And you see it, right?
01:10You see, like, when Russia was taken away from SWIFT, you now see contracts being done.
01:17India's buying oil from Russia in rupee, you know, denominated invoicing.
01:23China and Russia are operating in the yuan.
01:25So that's the chipping away component.
01:28You still have the dollar dominance.
01:29Over the last five years, the U.S. market has been so strong, right, well, since 2022 with a couple of hiccups.
01:36I also think part of this is a little bit of rebalancing.
01:39And then it all depends on your perspective.
01:42I mean, if you were in Europe and you invest in the U.S. market, even though this has been a pretty strong market this year,
01:48you pretty much were wiped out because of the depreciation of the dollar.
01:51So I think part of this also is where you sit because currency is always a risk that you have to weigh into your portfolio.
01:59But I think that, you know, I also think, like, U.S. investors are looking around the globe as well to say,
02:07where are there other opportunities that we should be thinking about?
02:10A third of our clients come from outside the U.S.
02:13And so, you know, our view is we have to have the right products for all markets.
02:18So you might get U.S. investors who say, well, I'm not going to invest in China and technology because I'm worried that there may be a policy change.
02:26On the other hand, you have Asian, European, Middle East investors who say, you know, look at how the performance of the Chinese market.
02:32I think there's great opportunity, great innovation here.
Be the first to comment