A case for lower rates for longer and a weaker USDollar ahead.
1) In his first presidential debate with Clinton on September 26th, Trump said “Believe me, we are in a bubble right now, and the only thing that looks good is the stock market, but if you raise interest rates even a little bit, that’s going to come crashing down. We are in a big, fat, ugly bubble.”
2) If Donald Trump really aims to bring manufacturing (and JOBS) back to USA, then, beyond other things, he must also think about additional preferences for future US exports (Exporters), including the benefit from a weaker national currency - USD.
Thus we have a case of cautiousness with rising rates combined with a necessity of lowering the USDollar value.
As always, only time will tell.
2) If Donald Trump really aims to bring manufacturing (and JOBS) back to USA, then, beyond other things, he must also think about additional preferences for future US exports (Exporters), including the benefit from a weaker national currency - USD.
Thus we have a case of cautiousness with rising rates combined with a necessity of lowering the USDollar value.
As always, only time will tell.
評論:
Extreme dollar pressure. Extreme. But the idea is still the same - short the Dollar, buy Gold.