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I think the main reasons of the strong USD are: - it's status as world reserve currency - it's seen as a safe heaven - The US is still the most profitable marke

I think the main reasons of the strong USD are: - it's status as world reserve currency - it's seen as a safe heaven - The US is still the most profitable market to launch new product - the US job market is still performing well compared to the battered economies of Europe where unemployment is starting to go back up If the ECB decides to lower interest rates before the US Fed does, then even more capital will flow in the US because why would you accept a lower interest rate when you can get a better one in the US in the same asset class. That in turn will keep making the USD stronger than the euro.

servus45678981 2y ago
I still don’t get why anyone would invest in a regime like the US or China. Europe will show its glory again; no matter what. We will get back what was stolen.
- oytis 2y ago
  What US "regime"? Have I missed something? Is Trump already a president for life? > Europe will show its glory again; no matter what. Unless Europe finds a way to monetise retired people, lack of natural resources and free land and the grip of bureaucracy and old money I find it highly unlikely
- Yoric 2y ago
  I'm a EU citizen and I have no idea what you're talking about.
orwin 2y ago
Weirdly, there is also a premium on US multinationals. When you compare dividends+buybacks from UK/French/German companies to US companies, expected returns over 10years, and stock price, excluding "growth" companies (Tesla, netflix, Uber), you can see a 10 to 20% premium. Is it stability priced in?
- redox99 2y ago
  If given choice to invest in a US company or an EU company, all things being equal, I'd pick US any day of the week. 10% to 20% premium seems kinda low in fact.
  - orwin 2y ago
    Yeah, i think it is a totally reasonable thing to do, if you're a day trader or a short term investor, or you invest in "growth" companies _I_ also think it shouldn't matter in non-tech, non-growth companies. If Nestlé or lactalis crash (lactalis might be a bad example, i don't think they have public investors), i doubt Cargill or Heins will take the hit better. If you're a long-term investor (and let's be honest, most of us are) and mostly count on dividends to "make" money, you should be better off investing in old brand without paying the US premium.

servus45678981 2y ago

I still don’t get why anyone would invest in a regime like the US or China. Europe will show its glory again; no matter what. We will get back what was stolen.

oytis 2y ago
What US "regime"? Have I missed something? Is Trump already a president for life? > Europe will show its glory again; no matter what. Unless Europe finds a way to monetise retired people, lack of natural resources and free land and the grip of bureaucracy and old money I find it highly unlikely
Yoric 2y ago
I'm a EU citizen and I have no idea what you're talking about.

orwin 2y ago

Weirdly, there is also a premium on US multinationals. When you compare dividends+buybacks from UK/French/German companies to US companies, expected returns over 10years, and stock price, excluding "growth" companies (Tesla, netflix, Uber), you can see a 10 to 20% premium. Is it stability priced in?

redox99 2y ago
If given choice to invest in a US company or an EU company, all things being equal, I'd pick US any day of the week. 10% to 20% premium seems kinda low in fact.
- orwin 2y ago
  Yeah, i think it is a totally reasonable thing to do, if you're a day trader or a short term investor, or you invest in "growth" companies _I_ also think it shouldn't matter in non-tech, non-growth companies. If Nestlé or lactalis crash (lactalis might be a bad example, i don't think they have public investors), i doubt Cargill or Heins will take the hit better. If you're a long-term investor (and let's be honest, most of us are) and mostly count on dividends to "make" money, you should be better off investing in old brand without paying the US premium.