At some point, just like everything else the strong US dollar will reverse trend so I wanted to start a discussion to see how that might happen, what kind of factors could trigger it and try to identify investments that have solid fundamentals but been beaten down by a strong dollar and would stand to gain if the dollar became more neutral. Let me preface this with, I'm not generally the kind to keep track of this sort of thing without reading a news article on it first but since the new CNBC app came out I did a little exploring and found a couple of things in the process that I wasn't expecting (also I have zero ties to CNBC). If you hit the market tab and then drop down to Currencies you'll see what I'm talking about where just about every currency ratio favors the US$ and it seems like the trend has been like that for a little while. I'm guessing a lot of that has to do with the other drop down that I started following, Bonds. I was mainly curious about kind of keeping tabs on the change in the amount of distance between the US 10yr & 2yr to monitor if they became equal or inverted but I noticed that CNBC had a lot of other countries listed that I've never even tried to find data on. Most of the developed economies look like they are using very low or even negative interest rates in comparison to the US economy. Like I was saying before, I wanted to get the group's opinion on what kind of assets would have been suppressed by these two functions and might rebound nicely if the trend were to normalize. The first thing that came to mind was something like a Mexican Bank that has solid fundamentals, would not warrant a beat down and would rise if it's currency appreciated (Banco Santander, BSMX). I'm definitely sure there are better countries to target or maybe even better industries that might see greater appreciation from a currency shift so I thought I'd bring it up for discussion in here. Thanks
Submitted December 02, 2018 at 09:20AM by BicycleGripDick https://ift.tt/2Q6mAdp
