Connecting the Dots
- Donald Trump cut taxes ( he wants to make America great again)—- (which lead to)
- To take advantage of tax cuts, US corporations repatriate Dollar stashed/invested abroad-(which led to)
- More Demand for dollar vs other currencies-(which led to)
- Fall in currencies (mainly EM) which had to supply dollar-(which led to)
- Indiscriminate selling of local asset (read EM)to fulfill dollar demand-(which led to)
- Strengthening of Dollar vs these currencies and finally this dollar which came back home had to be invested somewhere right?
[REITs]
Q2 hedge fund letters, conference, scoops etc
The repatriated dollar went straight into stock buybacks leading to artificial demand for US stocks and that is why US market continues to be strong whereas all others are clearly struggling.
Now comes the 64 million (Dollar) question...Is the pain over?
My view …no not at all…. this is the first time Americans don’t give a shit to what’s happening in rest of the world and happy to use Dollar as a weapon till it does not turn on them.
Article by Ritesh Jain, World Out Of Whack
