Q: In the event that the USD reverses course and starts to become even moderately devalued (e.g. BRICS decides to actually develop an alternative trading currency system that by-passes the USD), how should Canadian investors strategize and position themselves within the various asset classes?
5i Research Answer:
We wouldn't view this as an overly likely outcome in the medium term and we are not sure it would or should really impact an investors' approach to their portfolio. It might make some international fixed income offerings more attractive, so some added diversification in that space might make sense. But overall we don't think it really changes a whole lot for a portfolio.