Don’t Be Misled By The Sweet Name, The Dollar Milkshake Is No Treat For Investors

Stéphane Renevier

3 months ago5:50 mins

Don’t Be Misled By The Sweet Name, The Dollar Milkshake Is No Treat For Investors

Normally, we love a milkshake. But the “Dollar Milkshake Theory”, a market concept whipped up by Brent Johnson, CEO of Santiago Capital, is one nobody really wants. It means a massive squeeze higher for the US dollar, and a massive worry for investments all over the world. Here’s why, and how you can protect your portfolio from frosting over…

What is the Dollar Milkshake Theory?

The milkshake theory basically holds that there simply aren’t enough US dollars created to keep up with the rising demand. And when the greenback rises high enough, fast enough to lead to defaults abroad, the demand for dollars swirls up and its supply shrinks, leading to an epic squeeze higher. The result is a sovereign debt crisis, a massive devaluation in other currencies, and a likely big blow to your portf

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