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There's tons of global markets to invest in, not just US, and of course other US investment instruments other than stocks if you feel those are more investable
by HarHarVeryFunny 2y ago
There's tons of global markets to invest in, not just US, and of course other US investment instruments other than stocks if you feel those are more investable in current climate.
There has already been capital flight. Trump's (temporary?) U-turn on tariffs was due to a massive sell-off in US Treasuries, largely by the Japanese, which caused yields to jump.
- dummydummy1234 2y agoWas that a actual selloff, or an unwinding of the basis trade leading to a selloff?
- HarHarVeryFunny 2y agoI don't know - I'd initially seen it discussed without mention of that, but now I see there's talk of two different basis trades ... https://www.morningstar.com/news/marketwatch/20250412232/how-the-trade-of-the-year-in-the-bond-market-became-a-nightmare-for-investors-after-trumps-tariffs https://www.morningstar.com/news/marketwatch/20250412232/how... The US would certainly be in trouble if the perception of instability reduces the appetite for US debt, or if holders choose to weaponize it.