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> But Europeans buying US Treasuries would be subject to currency risk, So would Europeans buying Verizon which was the example that your parent replied to.
by kgwgk 3y ago
> But Europeans buying US Treasuries would be subject to currency risk,
So would Europeans buying Verizon which was the example that your parent replied to.
- PKop 3y agoYes definitely, I didn't mean to imply therefore US stocks are the better choice, only that US fixed income isn't some straightforward escape hatch for Europeans.
- kgwgk 3y agoAgreed. But EU fixed income is becoming very attractive and 3% risk-free short-term government debt (that can be easily bought directly from the government with minimal fees at least in some countries) is much better than a bank account paying 0% (or maybe more but probably in a less solid bank).
- PKop 3y agoYes, that's what I would suggest and do myself if I was European, not buy US treasuries.