When the USD stops being the world’s reserve currency, it will never recover its previous value because it will never again have such a status and the worldwide demand for a currency that comes it it, so in broad terms it won’t be a “dip”.
Sure, it will overshot its final value (big market movements always do) so there will be a local dip at the bottom, but even if one can actually time it right (good luck with that) whether one can profit from it or not also depends on whether it actually caused hyperinflation and how the authorities deal with it - those things tend to be confusing and involve things like emission of a new currency or other non-orthodox measures as seen in Germany’s, Zimbabwe’s and several Latin American country’s historical situations of hyperinflation.
More in general and if you look at other markets, a run on an asset (say, a stock whose price is crashing) usually breaks the market for it (for example, in the 2008 Crash Bear Stern’s stock value collapsed and the whole company ended up being bought by another bank for $1), so I wouldn’t bet on the usual market rules applying to a USD during a period of hyperinflation.
I suppose if you’re just using something that mirrors the asset rather than being the asset, such as a derivative, you might be able to take advantage of the local dip at the bottom.
When the USD stops being the world’s reserve currency, it will never recover its previous value because it will never again have such a status and the worldwide demand for a currency that comes it it, so in broad terms it won’t be a “dip”.
Sure, it will overshot its final value (big market movements always do) so there will be a local dip at the bottom, but even if one can actually time it right (good luck with that) whether one can profit from it or not also depends on whether it actually caused hyperinflation and how the authorities deal with it - those things tend to be confusing and involve things like emission of a new currency or other non-orthodox measures as seen in Germany’s, Zimbabwe’s and several Latin American country’s historical situations of hyperinflation.
More in general and if you look at other markets, a run on an asset (say, a stock whose price is crashing) usually breaks the market for it (for example, in the 2008 Crash Bear Stern’s stock value collapsed and the whole company ended up being bought by another bank for $1), so I wouldn’t bet on the usual market rules applying to a USD during a period of hyperinflation.
I suppose if you’re just using something that mirrors the asset rather than being the asset, such as a derivative, you might be able to take advantage of the local dip at the bottom.