When Hurricane Melissa swept across Jamaica, it didn’t just shake rooftops and uproot trees it rattled the sense of stability many people felt about their personal finances. In the days that followed, as communities checked in on neighbours and cleared debris from roads, another conversation began to emerge: How do we make our money as resilient as we strive to be? My prospective client Marsha shared a moment that stuck with me. As she packed away the candles and bottled water after the storm passed, she sighed and said, “I realize something Anna: I prepare my house for a hurricane, but I’ve never really prepared my finances.” That reflection is more common than we admit. Natural disasters have a way of exposing vulnerabilities not only in our infrastructure, but in our investment strategies. And one powerful tool investors often overlook is the strategic use of USD-denominated assets.
Why the USD Matters—Especially After a Storm
In the aftermath of Melissa, many Jamaicans saw first hand how quickly uncertainty can swirl. Weather shocks can disrupt supply chains, pressure local currencies, and create volatility in domestic markets. In contrast, USD-denominated assets tend to offer a stabilizing effect because they’re tied to one of the world’s strongest and most widely used currencies. Investing in USD-based products such as USD mutual funds, global bonds, or USD money market instruments acts like an anchor when local waters get choppy. Even when regional economies experience stress, USD assets often hold or even gain value, giving investors a cushion during difficult periods.
The Power of Diversification: A Lesson from the Storm
Think of your portfolio the way you think of your home before hurricane season. You wouldn’t rely on just shutters or just sandbags, you’d reinforce multiple areas so one break doesn’t bring down everything. USD-denominated assets function like that additional layer of protection. They don’t replace Jamaican investments; they complement them. They reduce concentration risk, broaden exposure to global opportunities, and give investors access to markets that continue to grow even when local conditions are temporarily slow.
From Crisis to Confidence
Resilience isn’t just about surviving a storm; it’s about emerging stronger than before.
USD-denominated investments help achieve exactly that. They offer:
- Currency protection when the Jamaican dollar weakens.
- Access to global growth, not limited by geographic borders.
- Stability during regional shocks, weather-related or otherwise.
These advantages make USD assets not just an option, but a strategic necessity in a world where climate and economic uncertainties are becoming more frequent.
Looking Ahead
As communities continue to recover, it’s worth taking a page from Marsha’s story. Preparing your finances for the unexpected is one of the most empowering steps you can take. Whether you’re just starting or looking to strengthen what you’ve already built, incorporating USD-denominated assets can help ensure your portfolio weathers whatever the next season brings.
Anna-Joy Tibby-Bell is Assistant Vice-President, Personal Financial Planning at Sterling Asset Management. Sterling provides financial advice and instruments in U.S. dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm
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