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What are some realistic alternatives to US markets here? Selling is one thing, the question is what to buy instead? I mean, everyone starting to buy european instead would be great for stock prices, but it wouldn't make the underlying assets more valuable, right?
“I don’t need to outrun the bear. I just need to outrun you. “
A brief search suggests this is around 1/4000th of the total US treasury market, so if this has any significance at all, it's symbolic.
What are some realistic alternatives to US markets here? Selling is one thing, the question is what to buy instead? I mean, everyone starting to buy european instead would be great for stock prices, but it wouldn't make the underlying assets more valuable, right?
If you're trying to escape an expected upcoming crash you don't necessarily need to look for growth but instead stability. Precious metals are always popular but simply shifting a portion of your money into an index fund of a different stock exchange should help minimize your exposure to any catastrophic loss.
This is, of course, not financial advice.
What would be more serious is if the Norwegian Government Pension Fund started to sell off US investments. That runs around $2 trillion.
What would be more serious is if the Norwegian Government Pension Fund started to sell off US investments. That runs around $2 trillion.
EU together with UK and Canada hold more Treasurys than the entire rest of the world combined, and if they dumped them all at once it would be significantly painful for the average American as interest rates would spike, as would inflation. The Dollar would decline against most other major currencies.
However dumping that much debt all at once would require the sellers to heavily discount a large portion of their bonds, earning them increasingly fewer, and paying in (depreciating) dollars.
It's exceedingly likely that de-dollarization accelerates from here, but it's also unlikely that even the Norwegian government sells it all at once. Rather than mass selling, expect EU entities to curtail or even cease buying US bonds altogether if the geopolitical situation doesn't improve.
A brief search suggests this is around 1/4000th of the total US treasury market, so if this has any significance at all, it's symbolic.
It's self evident that this is just the beginning. Expect one group of pundits to pretend this is irrelevant as long as possible.
Then again, they say whatever they need to in order for their paychecks to keep coming.
What are some realistic alternatives to US markets here? Selling is one thing, the question is what to buy instead? I mean, everyone starting to buy european instead would be great for stock prices, but it wouldn't make the underlying assets more valuable, right?
What would be more serious is if the Norwegian Government Pension Fund started to sell off US investments. That runs around $2 trillion.
Norway only holds $219 billion in US Treasury bonds. What investments are you talking about?
What are some realistic alternatives to US markets here? Selling is one thing, the question is what to buy instead? I mean, everyone starting to buy european instead would be great for stock prices, but it wouldn't make the underlying assets more valuable, right?