Retirement Security

September 10, 2022

The Puzzling Performance of a Strong U.S. Dollar

It May Hit Corporate Profits, But It’s Great If You Travel To Europe

Let's get started with where we all are in the midst of. And that's the turmoil you've been experiencing personally and observing in the economy. There's one segment that is doing incredibly well, very, very strong. The U.S. dollar, we compare the value of the U.S. dollar to other currencies around the world. We discover that our dollar is going up in value and other countries’ currencies are going down in value. Well, is that a big deal? Isn't that good news?

Well, not necessarily. Johnson and Johnson just reported that its profits are going down because the dollar is going up. The company says it generates half of its sales outside the US. So think about this. If you live in Europe and you want to buy a product from J&J, you've got to use your euro to buy something that is manufactured in dollars. So the lower your euro, the more of them you got to spend. In other words, you've got a big price increase for Johnson and Johnson products. Even without inflation, J&J says that the strong dollar is costing the company $4 billion in sales. Microsoft and IBM are saying the same thing. The dollar so far this year is up 12%. So a strong dollar is actually bad news for American businesses trying to sell overseas.

Now, there is a flip side to this. As an American living here in the U.S., if you want to travel overseas, like take a vacation in France, it's a bargain because the US dollar is so strong compared to the euro. So it's great news for an American who's buying overseas goods or traveling overseas, but it's bad news for American businesses that are trying to sell to overseas consumers.

Hey, speaking of the dollar, speaking of cash - okay, I wasn't really, but I'm going to use that as a segue here. Mutual fund managers and ETF managers have now boosted their holdings of cash to a 21 year high. We haven't seen them holding so much cash since 2008, and we know why they did that back then. 58% of fund managers say they're taking less risk than usual.

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Jillian DelSignore

Global Head of Investor Distribution Strategy | Nasdaq Global Indexes

Jillian DelSignore, CIMA, is Global Head of Investor Distribution Strategy, Indexes at Nasdaq.

Prior to joining Nasdaq, Jillian was Head of ETFs & Indexing at FLX Distribution. FLX is a first of its kind technology platform that brings together asset managers, distribution professionals, wealth managers, and advisors.

Before and during her time at FLX, she was the Principal of Lakefront Advisory advising financial services firms on accelerating their growth through initiating, scaling or changing their distribution strategy. Given her depth of experience in the ETF industry, she also helps her clients demystify the ETF ecosystem by advising on the intricacies of that market.

Before starting Lakefront Advisory, Jillian was Head of ETF Distribution with J.P.Morgan’s Asset Management business. She was responsible for leading the sales and distribution efforts and strategy in the intermediary and institutional markets.

She also serves on the Board of Women in ETFs (WE), Inc, the first women’s group for the ETF industry, and served as Co-President from 2017-2019. Founded in 2014, WE achieves the mission to connect, support and inspire by organizing events globally that support our goals of education, networking, philanthropy.

Before joining J.P.Morgan in September 2015, Jillian was a Strategic Account Manager within BlackRock's iShares ETF Institutional Asset Management Group. She was responsible for developing and maintaining relationships with institutional investors, including boutique asset managers, global institutional asset managers, hedge funds and registered investment advisory firms.

Prior to joining iShares in March, 2009, Ms. DelSignore worked in the Independent Advisory Channel of Goldman Sachs Asset Management covering GSAM mutual funds, separate accounts, retirement plans, and alternative investments. She joined Goldman Sachs in 2005. Earlier, Ms. DelSignore worked in both the Institutional Corporate Cash and Global Bank Divisions at Federated Investors from 2000-2005.

Ms. DelSignore has a B.A. in Communications from John Carroll University and an M.B.A degree in Finance from the Katz Graduate School of Business at the University of Pittsburgh. She earned her CIMA designation from the Wharton School of Business at the University of Pennsylvania and holds the Series 3, 6, 7, 24 and 66 licenses.

Jillian DelSignore

Global Head of Investor Distribution Strategy | Nasdaq Global Indexes

Jillian DelSignore, CIMA, is Global Head of Investor Distribution Strategy, Indexes at Nasdaq.

Prior to joining Nasdaq, Jillian was Head of ETFs & Indexing at FLX Distribution. FLX is a first of its kind technology platform that brings together asset managers, distribution professionals, wealth managers, and advisors.

Before and during her time at FLX, she was the Principal of Lakefront Advisory advising financial services firms on accelerating their growth through initiating, scaling or changing their distribution strategy. Given her depth of experience in the ETF industry, she also helps her clients demystify the ETF ecosystem by advising on the intricacies of that market.

Before starting Lakefront Advisory, Jillian was Head of ETF Distribution with J.P.Morgan’s Asset Management business. She was responsible for leading the sales and distribution efforts and strategy in the intermediary and institutional markets.

She also serves on the Board of Women in ETFs (WE), Inc, the first women’s group for the ETF industry, and served as Co-President from 2017-2019. Founded in 2014, WE achieves the mission to connect, support and inspire by organizing events globally that support our goals of education, networking, philanthropy.

Before joining J.P.Morgan in September 2015, Jillian was a Strategic Account Manager within BlackRock's iShares ETF Institutional Asset Management Group. She was responsible for developing and maintaining relationships with institutional investors, including boutique asset managers, global institutional asset managers, hedge funds and registered investment advisory firms.

Prior to joining iShares in March, 2009, Ms. DelSignore worked in the Independent Advisory Channel of Goldman Sachs Asset Management covering GSAM mutual funds, separate accounts, retirement plans, and alternative investments. She joined Goldman Sachs in 2005. Earlier, Ms. DelSignore worked in both the Institutional Corporate Cash and Global Bank Divisions at Federated Investors from 2000-2005.

Ms. DelSignore has a B.A. in Communications from John Carroll University and an M.B.A degree in Finance from the Katz Graduate School of Business at the University of Pittsburgh. She earned her CIMA designation from the Wharton School of Business at the University of Pennsylvania and holds the Series 3, 6, 7, 24 and 66 licenses.

Tom Balcom CFP®, CAIA, MBA

Founder | 1650 Wealth Management

Tom began his career in the financial services industry in 1998, working at two of the nation’s largest brokerage firms. His passion for educating and protecting his clients’ wealth developed as he witnessed novice investors entrusting their life savings to “financial advisors” whose top priority was meeting their monthly sales quotas.

Tom aspired to differentiate himself from the crowd. He earned an MBA degree with a Specialization in Investments from the University of Miami in 2000 and became a fee-only, independent, registered investment advisor at a private wealth management firm in Miami. Tom earned the Certified Financial Planner (CFP®) designation in 2003 and the Chartered Alternative Investment Analyst (CAIA) designation in 2005.

In 2010, after gaining over a decade of private wealth management experience, Tom took his passion for educating and protecting his clients’ wealth and founded 1650 Wealth Management. 1650 Wealth Management is a fee-only, independent, private wealth management investment advisor. Tom neither sells investment products nor does he receive sales commissions. Tom focuses on actively managing and creating custom investment management strategies with the goal of protecting and growing his clients’ wealth.

Tom has spent a majority of his career studying and investing in alternative investments. He has spoken at numerous industry conferences including: Structured Products Americas Conference, MTN-I Structured Products Conference, Super Bowl of Indexing Conference, Innovative Alternative Strategies Conference, North American Structured Products Conference, Forum on Alternative Investments, Retail Alternative Investments, Private Wealth Southeast Forum, and the Financial Planning Association of Miami.

He is a contributing guest contributor for the Structured Products Daily publication and has been interviewed by top news and financial publications including: Bloomberg Businessweek, New York Times, CNBC, Investment News, Daily Business Review, CNNMoney.com, Registered Rep, SmartMoney, Forbes, Robb Report, Worth, Structured Retail Products, NerdWallet.com, SunSentinel.com, Florida Trend Magazine and the South Florida Business Journal.

He previously was as an adjunct professor within Barry University’s Personal Financial Planning program and in 2014, Tom was asked to serve as an expert witness on behalf of the Certified Financial Planner Board of Standards (CFP Board).

Originally from Nashua, New Hampshire, Tom has made South Florida his home for nearly 30 years. Tom and his family reside in Lighthouse Point, Florida. On the weekends, you may find Tom golfing (or attending his daughter’s junior golf tournaments), traveling, spending time with his family and actively supporting the University of Miami’s football and basketball teams.

Tom Balcom CFP®, CAIA, MBA

Founder | 1650 Wealth Management

Tom began his career in the financial services industry in 1998, working at two of the nation’s largest brokerage firms. His passion for educating and protecting his clients’ wealth developed as he witnessed novice investors entrusting their life savings to “financial advisors” whose top priority was meeting their monthly sales quotas.

Tom aspired to differentiate himself from the crowd. He earned an MBA degree with a Specialization in Investments from the University of Miami in 2000 and became a fee-only, independent, registered investment advisor at a private wealth management firm in Miami. Tom earned the Certified Financial Planner (CFP®) designation in 2003 and the Chartered Alternative Investment Analyst (CAIA) designation in 2005.

In 2010, after gaining over a decade of private wealth management experience, Tom took his passion for educating and protecting his clients’ wealth and founded 1650 Wealth Management. 1650 Wealth Management is a fee-only, independent, private wealth management investment advisor. Tom neither sells investment products nor does he receive sales commissions. Tom focuses on actively managing and creating custom investment management strategies with the goal of protecting and growing his clients’ wealth.

Tom has spent a majority of his career studying and investing in alternative investments. He has spoken at numerous industry conferences including: Structured Products Americas Conference, MTN-I Structured Products Conference, Super Bowl of Indexing Conference, Innovative Alternative Strategies Conference, North American Structured Products Conference, Forum on Alternative Investments, Retail Alternative Investments, Private Wealth Southeast Forum, and the Financial Planning Association of Miami.

He is a contributing guest contributor for the Structured Products Daily publication and has been interviewed by top news and financial publications including: Bloomberg Businessweek, New York Times, CNBC, Investment News, Daily Business Review, CNNMoney.com, Registered Rep, SmartMoney, Forbes, Robb Report, Worth, Structured Retail Products, NerdWallet.com, SunSentinel.com, Florida Trend Magazine and the South Florida Business Journal.

He previously was as an adjunct professor within Barry University’s Personal Financial Planning program and in 2014, Tom was asked to serve as an expert witness on behalf of the Certified Financial Planner Board of Standards (CFP Board).

Originally from Nashua, New Hampshire, Tom has made South Florida his home for nearly 30 years. Tom and his family reside in Lighthouse Point, Florida. On the weekends, you may find Tom golfing (or attending his daughter’s junior golf tournaments), traveling, spending time with his family and actively supporting the University of Miami’s football and basketball teams.

Tom Balcom CFP®, CAIA, MBA

Founder | 1650 Wealth Management

Tom began his career in the financial services industry in 1998, working at two of the nation’s largest brokerage firms. His passion for educating and protecting his clients’ wealth developed as he witnessed novice investors entrusting their life savings to “financial advisors” whose top priority was meeting their monthly sales quotas.

Tom aspired to differentiate himself from the crowd. He earned an MBA degree with a Specialization in Investments from the University of Miami in 2000 and became a fee-only, independent, registered investment advisor at a private wealth management firm in Miami. Tom earned the Certified Financial Planner (CFP®) designation in 2003 and the Chartered Alternative Investment Analyst (CAIA) designation in 2005.

In 2010, after gaining over a decade of private wealth management experience, Tom took his passion for educating and protecting his clients’ wealth and founded 1650 Wealth Management. 1650 Wealth Management is a fee-only, independent, private wealth management investment advisor. Tom neither sells investment products nor does he receive sales commissions. Tom focuses on actively managing and creating custom investment management strategies with the goal of protecting and growing his clients’ wealth.

Tom has spent a majority of his career studying and investing in alternative investments. He has spoken at numerous industry conferences including: Structured Products Americas Conference, MTN-I Structured Products Conference, Super Bowl of Indexing Conference, Innovative Alternative Strategies Conference, North American Structured Products Conference, Forum on Alternative Investments, Retail Alternative Investments, Private Wealth Southeast Forum, and the Financial Planning Association of Miami.

He is a contributing guest contributor for the Structured Products Daily publication and has been interviewed by top news and financial publications including: Bloomberg Businessweek, New York Times, CNBC, Investment News, Daily Business Review, CNNMoney.com, Registered Rep, SmartMoney, Forbes, Robb Report, Worth, Structured Retail Products, NerdWallet.com, SunSentinel.com, Florida Trend Magazine and the South Florida Business Journal.

He previously was as an adjunct professor within Barry University’s Personal Financial Planning program and in 2014, Tom was asked to serve as an expert witness on behalf of the Certified Financial Planner Board of Standards (CFP Board).

Originally from Nashua, New Hampshire, Tom has made South Florida his home for nearly 30 years. Tom and his family reside in Lighthouse Point, Florida. On the weekends, you may find Tom golfing (or attending his daughter’s junior golf tournaments), traveling, spending time with his family and actively supporting the University of Miami’s football and basketball teams.