SG Talk

Full Version: Investors ditch US assets amidst uncertainty.....
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The US has trade deficitĀ  with many countries. This means excess US dollars around the world. What do countries and foreign holders ? They buy US assetsĀ  with these dollars.

Now Donald Trump wants to impose tariffs and reduce trade deficit. This will cause USD assets like stocks and bonds to fall.

Sell US stocks and treasuries before they fall further.

Ditch where?
If someone sell, someone else will buy. Who are the buyers?
If only Trump is a true business man. He should pitch USA 2.0 to all nations, he can still turn the current tariff thingy to an advantage.

Invite all the countries to invest in USA 2.0 infrastructure redevelopment. This involves future proofing their transport network and connectivity across USA. The investors will buy into a piece of the future earnings by investing into the construction phase and the massive project will take a decade to complete (this will help secure his 3rd term).