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While the tax plan and high stock valuations get all the press and media attention, another important factor has been swept under the rug. And that’s the rapidly declining dollar.

Despite several bullish trends that should be pushing the currency higher, the dollar has continued to weaken versus rivals. This drop has some pretty big investment implications for our portfolios.

In the end, the fate of the dollar is something that can’t be ignored. For investors, taking advantage of the drop is key to getting through the quarters ahead.

Discover U.S. dollar ETFs here.

A Pronounced Drop

By all measures, the U.S. dollar should be surging on a wave of bullishness. Several factors that have historically pushed up the greenback versus other currencies are currently trending in the dollar’s favor.

For one thing, the strength of the economy should be boosting the dollar. Recent economic gains and revisions to GDP estimates for the United States are all pointing higher and, in that, investors have typically jumped into the dollar with both feet. At the same time, fiscal stimulus – courtesy of the recent tax cuts – should be adding fuel to the rising dollar fire. Add in the low unemployment levels and the economy is very supportive of the currency.

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