Please explain what this means:
"The US dollar appears to be entering a long-awaited devaluation period to compensate for global imbalances. But this is also likely to spark a significant sell-off of US equities and bonds because many investors will not want to hold assets valued in a currency that is in decline."
As the dollar continues to decline, the US equities continues to rise.....not what I expecte4d from the above statement by an economist.
2007-09-21 23:23:14 · 3 answers · asked by Peter888 1 in Social Science ➔ Economics
In a global economy investors have a choice between US bonds (interest barring securities) and equities, and foreign bonds and equities which all compete for investment dollars. There is about an equal amount in bonds and equities and the US has nearly half of the total in both, With US returns falling, they are forced to accept lower expected returns, and the after the cut in interest rates with the expectation of more to follow, investors may think equities are a better choice. When was this statement made, market predictions are not valid after conditions change.
2007-09-22 02:50:44 · answer #1 · answered by meg 7 · 0⤊ 0⤋
You are misinterpreting. A "sell-off" means that the price is expected to decline. So, that statement claims that the dollar and equities are expected to decline .
2007-09-22 02:59:16 · answer #2 · answered by Homer J. Simpson 6 · 0⤊ 0⤋
So "the fairness of the valuables exceeds application rules"? rules are rules and the mortgage substitute application has to stay with its own rules. What component of that don't you recognize? $14,000? Huh? Why could Wamu or the different financial enterprise desire to "rip-off" you out of your homestead? What do you think of they're making plans to do with it? All banks have too many financial enterprise-owned residences on the books to need any further. How could it benefit them?
2016-12-17 07:27:34 · answer #3 · answered by okamura 4 · 0⤊ 0⤋