You might have heard some murmurs lately about the U.S. dollar possibly losing its status as the world’s reserve currency. It has been a highly volatile April since Trump’s Liberation Day rollout of tariffs against the world. Markets have been selling off with a vengeance, and the dollar has fallen, dropping to a three-year low.

So much so that former Treasury Secretary and Federal Reserve Chairperson Janet Yellen warned that investors might be losing confidence in dollar-based assets. Yellen called into question “the safety of what is the bedrock of the global financial system, namely U.S. Treasuries.”

Needless to say, this is a huge concern. This isn’t just a narrative for economists and investors. If the dollar takes a serious hit, it could affect everyone – from retirees on fixed incomes to families trying to buy their first home and business owners managing rising costs.

Is there really something to fear here?

Yes, the dollar took a hit – but this isn’t the first time. In fact, it’s been at these levels before and even lower before the pandemic. And guess under whose watch that was? Yes, it was Janet Yellen herself, at least on one occasion. What’s further comforting is that demand for U.S. government bonds is still very strong. Just last week, 88% of the buyers at a 10-year Treasury auction were foreign investors. If the world was done with the dollar, they wouldn’t be rushing to buy our debt.

Also, rising interest rates (aka Treasury yields) are part of what’s moving markets – but we were at these same levels just a couple months ago. So while the headlines sound scary, a little context goes a long way.

Here’s what you really need to know: The U.S. dollar is still involved in nearly 90% of all global transactions. According to the International Monetary Fund, 58% of the world’s currency reserves are in dollars. The euro comes in second at 20%. China’s currency, the yuan – the one people say might “take over” – holds just 2.2%.

Translation? The dollar may be down, but it’s far from out. Now, here’s the part that matters to you… When the dollar weakens dramatically, everyday life in America gets more expensive. Imported goods, gas, travel, and borrowing money could all cost more. It would feel like your money doesn’t go as far – and that’s a tough spot for anyone to be in.

So what should an intelligent, mindful American do? If you know me by now, you know what is coming next – no, not the part about taking out a HELOC before it’s too late – I am talking about the other thing that I am a big fan of…

Here’s a strategy that works in both good times and bad: invest in real estate. Owning property gives you something real and tangible that tends to rise in value over time. Even better, if you lock in a fixed-rate mortgage, you use today’s stronger dollar to your advantage. If the dollar weakens later, your mortgage payments stay the same – and it is likely that your property value will go up.

Additionally, looking into equities with global exposure, commodities like gold, and international investments can serve as effective hedges. Avoid holding excess cash, and instead, use tax-advantaged accounts and diversified portfolios to preserve purchasing power.

The bottom line is that the dollar isn’t going anywhere anytime soon. But it’s smart to stay prepared. Don’t panic – plan. Own tangible assets, use leverage wisely, and think long-term. That’s how you hedge against uncertainty and keep your financial future strong..

Would you rather have your salary tied to inflation (cost-of-living adjusted) or receive bonuses based on market performance? I’d love to hear your answer! Please let me know if you have a good “Would you rather” question, and we will highlight your submission.

Shmuel Shayowitz (NMLS#19871) is a highly regarded Real Estate & Finance Executive, Writer, Speaker, Coach, and Advisor. He is President and Chief Lending Officer of Approved Funding, a privately held national mortgage banker and direct lender. Shmuel has over twenty years of industry experience, holding numerous licenses and accreditations, including certified mortgage underwriter, licensed real estate agent, residential review appraiser, and accredited investor, to name a few. Shmuel has successfully navigated through many changing markets and business landscapes, making his market insights and experience well-coveted within the real estate industry. He can be reached via email at Shmuel@approvedfunding.com.