{"id":452552,"date":"2025-09-26T10:14:10","date_gmt":"2025-09-26T10:14:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/452552\/"},"modified":"2025-09-26T10:14:10","modified_gmt":"2025-09-26T10:14:10","slug":"investors-sell-the-dollar-and-buy-u-s-equities","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/452552\/","title":{"rendered":"Investors sell the dollar and buy U.S. equities"},"content":{"rendered":"

The success of U.S. equities in recent months and the returns on U.S. corporate bonds have not gone unnoticed by global investors.<\/p>\n

What has also not gone unnoticed is the risk of holding U.S. securities at a time when the dollar looks vulnerable after more than a decade of strength as Washington attempts to rebalance its trade relationship with its international partners.<\/p>\n

Get Joe Brusuelas\u2019s Market Minute economic commentary every morning. Subscribe now<\/a>.<\/p>\n

\"\"<\/a><\/p>\n

The U.S. dollar index, which has fallen by 11.07% this year, broke below its three-year trading range in August and has now broken below its 10-year average.<\/p>\n

These crossovers are confirmation of the effect of lower U.S. short-term interest rates and the concern over the sustainability of U.S. fiscal policy and the direction of U.S. trade policy.<\/p>\n

While global investors crave exposure to the dynamic U.S. tech sector, those investors also want to reduce that exposure to the direction the dollar.<\/p>\n

As a result, global investors are once again hedging their purchases of U.S. equities and bonds in the options market.<\/p>\n

They are in effect reducing their profits by purchasing insurance policies on the dollar\u2019s direction, but safeguarding their investments should the dollar\u2019s decline continue.<\/p>\n

What that strategy implies is that should equity markets turn down for whatever reason, the dollar will face a simultaneous depreciation, which will create further inflation risk for U.S. importers and households.<\/p>\n","protected":false},"excerpt":{"rendered":"The success of U.S. equities in recent months and the returns on U.S. corporate bonds have not gone…\n","protected":false},"author":2,"featured_media":452553,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3091],"tags":[51,2441,16,15],"class_list":{"0":"post-452552","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115270076105270049","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/452552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=452552"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/452552\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/452553"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=452552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=452552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=452552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}