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Why One Bank Expects The Dollar Bear Market To Deepen
The dollar's headed lower, particularly against other havens, including the yen, franc and euro.
Th
I find myself thinking like that last sentence more and more – safety and liquidity first, gains second
That’s life in general in the 2020s
“Although foreign investors might hold off on wholesale repatriation given that “a permanent liquidation and shift in assets requires conviction that return differentials versus the risk have [durably] shifted,” as Morgan Stanley put it, “the decision to FX hedge is far less consequential [and] gives investors more flexibility and optionality to wait and see how things play out.””
This is worth repeating. And being repeated to the next MAGAlyte you hear saying “Look, there has been no selling of US assets by foreigners.” You hedge first and then slowly sell the underlying assets to avoid the eyes of the administration.
And then H can pen an article titled “and then there were none”.