What is 'Dollar Bull'

Not to be confused with a dollar bill, a dollar bull is an investor or speculator who is optimistic about the outlook for the U.S. dollar against other currencies. A dollar bull expects the U.S. dollar to rise in value compared most major currencies over time and will take this factor into consideration when positioning investment portfolios. Dollar bull investors will take financial strategies that will support the USD and even work to help strengthen it. The opposite of a dollar bull is a bear investor, who believes that the value of the U.S. dollar will fall over time as compared to other currencies. A dollar bull investor will invest in stocks that favor the U.S. dollar, while bear investors will do the opposite.

BREAKING DOWN 'Dollar Bull'

Dollar bulls may generally hold the view that it is sheer folly to bet in the long term against the U.S. economy, and by extension the U.S. dollar. Dollar bulls might not specifically know which currency the dollar will outperform, or they may take a bullish position against a specific currency. For example, dollar bulls could believe that the greenback will increase in value as long as it remains the world's dominant reserve currency, since it is backed by the economy of the United States and its government. Or a dollar bull could bet that the U.S. dollar (USD) would specifically outperform the euro .

A dollar bull investor may take many factors into account for their position in betting on the U.S. dollar, such as the economy, the current country debt/spending ratio, market surplus, restrained commodity prices, and the geopolitical climate, as the value of the U.S. dollar is often strengthened and considered more stable in uncertain times, such as with a war.  

Example of a dollar bull

Dollar Bull investors really did not see a favorable economic shift in the market until 2016, when the U.S. dollar began driving the market for the first time in many years, thanks to an increase in American development and a slight anticipation of presidential fiscal ambition. However, some experts have warned that the Dollar Bull market is under serious threat, as economic policy and plans under President Trump may place the dollar at risk for devaluation. They believe that maintaining the USD/euro exchange rate strong is the key to stock market stability and that without efforts to preserve a dollar bull market, the entire economic system is at risk for collapse.

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