Wall Street Journal (April 14)
“The biggest issue in financial markets these days, other than tariffs, is the fate of U.S. dollar assets. Are President Trump’s herky-jerky decision-making and border taxes causing the world’s investors to shy away from the dollar and U.S. Treasurys?” Amid the volatility, that remains to be seen, but any shift would occur “’at the margin’ because the U.S. remains too big a market, and its financial system too liquid, to ignore.” Still, the potential impact should not be dismissed lightly. “Even a modest shift from Treasury bonds” could have enormous repercussions.
Tags: Bonds, Decision-making, Dollar assets, https://www.wsj.com/opinion/is-there-a-new-trump-risk-premium-tariffs-trade-policy-bonds-us-dollar-investing-9bee401d?mod=hp_opin_pos_4#cxrecs_s Financial markets, Impact, Investors, Jerky, Liquid, Margin, Shift, Tariffs, Taxes, Treasurys, Trump, U.S., Volatility
South China Morning Post (May 25)
Several factors help explain “the outperformance of Japanese shares.” Improved corporate governance and the end of deflation are important, but “the explanation with the most resonance for investors is Japan’s role as a safe haven in an increasingly risky world. This has taken on added significance because of concerns about the deepening geopolitical rift between the US and China, as well as economic and regulatory risks in China itself.” Japan boasts “the only market in Asia big and liquid enough to offer an alternative to China while still providing exposure to the reopening of its economy.”
Tags: Big, China, Corporate governance, Deflation, Economic, Exposure, Factors, Geopolitical rift, Investors, Japan, Liquid, Outperformance, Regulatory risks, Reopening, Risky world, Safe haven, Shares, US
Financial Times (June 3)
“There’s the potential for a big week for Japanese equities ahead if the gloom that hung over them in May persists into the first week of June.” President Trump’s trip to Japan lacked “clear reassurances for Japan on trade,” to say nothing of “clarity on how bad things could turn between the US and China.” Since Japanese stocks “are liquid and easily accessible,” they are “among the first to be sold when global funds become nervous and, as such, they fell heavily least week.”
