In recent weeks, a subtle but powerful signal has emerged: the long-standing correlation between the U.S. dollar and global risk aversion appears to be shifting. Following what markets dubbed “liberation day,” the dollar weakened sharply against major currencies; most notably, the euro. This move was unexpected. Reserve status is not a birthright. It comes with stringent, often overlooked requirements.
Good read! For me, Tesla and BYD aren’t really comparable. Tesla’s high valuation isn’t just about car sales. Its revenue comes from multiple segments, including energy, software, and autonomous tech. The "crazy" valuation some criticize is tied to the potential of robotics and AI, which could reshape several industries.
Jim Rogers' outlook is definitely worth paying attention to. He seems particularly pessimistic about the economy, predicting a serious recession. As for gold, traditionally, it’s used as a safe haven asset during recessions. It tends to rise when markets are uncertain, as investors flock to it for stability. It’s important to remember that gold’s value often increases during economic downturns because of its role as a hedge against market volatility.
This is a great article! I love that you give the perspective of great investors. This helps contextualize things, especially in such unusual times, from people that have experienced the market for a while!
Here in Australia, there are indications investors increasingly see Australia as a relatively safe place to invest.
One reason is Australia is rich in the raw materials nations need for manufacturing. China sees this and now takes about a quarter of Australia's exports.
Only 5% of Australia's exports go to the USA, so we are relatively insulated against a US recession.
China will win the trade war with the USA as investors dump US Treasury bonds, so Australia is on the right side.
The Aussie $ is already highly-traded.
Australia is also attracting US investors because it is safe, democratic and has robust laws to protect investors.
PM Albanese recently invited investors to redirect $80b of renewable energy investment funds from the USA to Australia, which is planning to reach 90% renewable energy generation within a decade, and is already halfway there.
Australia also has plentiful of the rare earths China has blocked from export to the US.
Albanese says Australia will establish a strategic reserve of rare earths and invest in processing them under its Future Made in Australia program.
Albanese also announced a $1b interest-free loan program to help Aussie companies divert from the US to markets such as India and Indonesia, which will soon be the 3rd and 4th largest economies.
As Trump destroys the US economy, other nations and investors are just walking away.
The US only has 20% of global trade anyway, so there is plenty of scope to grow the other 80%.
As Albanese said on 'The Rest is Politics' podcast, Trump's tariffs are self-destructive.
In recent weeks, a subtle but powerful signal has emerged: the long-standing correlation between the U.S. dollar and global risk aversion appears to be shifting. Following what markets dubbed “liberation day,” the dollar weakened sharply against major currencies; most notably, the euro. This move was unexpected. Reserve status is not a birthright. It comes with stringent, often overlooked requirements.
Good read! For me, Tesla and BYD aren’t really comparable. Tesla’s high valuation isn’t just about car sales. Its revenue comes from multiple segments, including energy, software, and autonomous tech. The "crazy" valuation some criticize is tied to the potential of robotics and AI, which could reshape several industries.
Jim Rogers' outlook is definitely worth paying attention to. He seems particularly pessimistic about the economy, predicting a serious recession. As for gold, traditionally, it’s used as a safe haven asset during recessions. It tends to rise when markets are uncertain, as investors flock to it for stability. It’s important to remember that gold’s value often increases during economic downturns because of its role as a hedge against market volatility.
This is a great article! I love that you give the perspective of great investors. This helps contextualize things, especially in such unusual times, from people that have experienced the market for a while!
This puts the recent pain into a bigger perspective, thank you!
You are welcome. My pleasure!
Sounds good advice.
Here in Australia, there are indications investors increasingly see Australia as a relatively safe place to invest.
One reason is Australia is rich in the raw materials nations need for manufacturing. China sees this and now takes about a quarter of Australia's exports.
Only 5% of Australia's exports go to the USA, so we are relatively insulated against a US recession.
China will win the trade war with the USA as investors dump US Treasury bonds, so Australia is on the right side.
The Aussie $ is already highly-traded.
Australia is also attracting US investors because it is safe, democratic and has robust laws to protect investors.
PM Albanese recently invited investors to redirect $80b of renewable energy investment funds from the USA to Australia, which is planning to reach 90% renewable energy generation within a decade, and is already halfway there.
Australia also has plentiful of the rare earths China has blocked from export to the US.
Albanese says Australia will establish a strategic reserve of rare earths and invest in processing them under its Future Made in Australia program.
Albanese also announced a $1b interest-free loan program to help Aussie companies divert from the US to markets such as India and Indonesia, which will soon be the 3rd and 4th largest economies.
As Trump destroys the US economy, other nations and investors are just walking away.
The US only has 20% of global trade anyway, so there is plenty of scope to grow the other 80%.
As Albanese said on 'The Rest is Politics' podcast, Trump's tariffs are self-destructive.
😂😂😂