YEP, SOUNDS ABOUT RIGHT. But it is a shifting situation and surprises from rest of world, esp Spring Russian offensive and more geopolitical lines being drawn, it will be fluid. Anyway, way too much debt globally and expect that to be a factor. No satisfactory solution here but some of it must be destroyed. More inflation as reshoring and near-shoring manufacturing and industrial production will be expensive for all.
Your scenario is very plausible. For an EUR based investor, USD cash carries a big currency risk. What is the alternative: Bunds, despite the big negative real interest?
does wile e coyote necessarily mean inflation comes down?
Sweden for example has much weaker growth than US, yet with higher inflation (and increasing YOY).
YEP, SOUNDS ABOUT RIGHT. But it is a shifting situation and surprises from rest of world, esp Spring Russian offensive and more geopolitical lines being drawn, it will be fluid. Anyway, way too much debt globally and expect that to be a factor. No satisfactory solution here but some of it must be destroyed. More inflation as reshoring and near-shoring manufacturing and industrial production will be expensive for all.
Your scenario is very plausible. For an EUR based investor, USD cash carries a big currency risk. What is the alternative: Bunds, despite the big negative real interest?
In risk off USD often appreciates. Otherwise hedge FX risk, or gold. Just some ideas…