It’s not good for the Yen when the US wants to introduce trade tariffs. It’s also not good for the Euro.
With the stock market it’s also not clear to interpret the message. Normally risky times mean that traders sell stocks and buy
treasury bonds. Given that Trump suggested he might partly default on US debt, that’s not a safe move.
Good point—I had not considered this. Still, I would assume that even if the dollar does not go down, there would still be some sort of sign of danger in the markets if there were possible economic problems. Maybe US stocks going down as money flows into overseas assets?
But the role of the US president shouldn’t be to beat other people but to create win-win situations.
Ideally, yes, but the world is not some perfect utopia, and there are external threats that do need to be beaten.
Maybe US stocks going down as money flows into overseas assets?
Quite a lot of money is going to flow into the US when there’s a deal to allow companies like Apple to move their cash to the US and not pay the full taxes for it.
In general a trader who assumes that Trump engages into actions that are harmful for other countries also has no reason to move assets to other countries.
Good point—I had not considered this. Still, I would assume that even if the dollar does not go down, there would still be some sort of sign of danger in the markets if there were possible economic problems. Maybe US stocks going down as money flows into overseas assets?
Ideally, yes, but the world is not some perfect utopia, and there are external threats that do need to be beaten.
Quite a lot of money is going to flow into the US when there’s a deal to allow companies like Apple to move their cash to the US and not pay the full taxes for it.
In general a trader who assumes that Trump engages into actions that are harmful for other countries also has no reason to move assets to other countries.