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Global Investors Have New Reason To Pull Back From U.S. Debt
Foreigners hold approximately 25% of Treasuries and also lend significant amounts to U.S. corporations. Treasuries are now less attractive to some of these entities due to the weaker USD and rising hedging costs.
We have been rebalancing more to oversea since January this year in both stocks and bonds. So far so good, particularly stocks. Treasuries are much less attractive as the debt piles on. Recently poor auction among long treasury notes tells it all.
Diversifying across both asset classes really pay off this year. It is the uncertainty that magnified the divergent, and the US vs developed market index is over 15 % difference! Fact is the dollar fell over 9% since last December and one to examine why. If American Exceptionalism is alive and well, where is it now? Think there are more compelling opportunities elsewhere.
We have been rebalancing more to oversea since January this year in both stocks and bonds. So far so good, particularly stocks. Treasuries are much less attractive as the debt piles on. Recently poor auction among long treasury notes tells it all.
Same. Most of my recent purchases/reallocations have been overseas.
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