The US dollar weakens. This is because a vast sums of money is pumped into the main street and financial markets to prevent a financial calamity.
There are some possible repercussions. These are possibilities and not definite:
- There are evidence to suggest the weakness in the US dollar is gonna last longer
- Whether there is inflation or weakness in the currency would depend on each country’s central bank’s response
- Equity markets remains more attractive than bonds
- Ex US markets looked more attractive than US
- Cyclical stocks, value, and small caps look to do better in this climate based on past data.
This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with username known as Kyith and has 1051 followers.
Even after the run-up in market indexes, according to the widely followed AAII survey, sentiments are pretty bearish still. …