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The Great Unwind: Why a Quiet Currency Crisis Could Rock Global Markets
For years, it was a winning formula for foreign institutions: • Convert to U.S. dollars • Buy U.S. stocks and bonds • Watch them outperform the rest of the world And as the U.S. dollar rose, returns were amplified even further. From money managers in London, pension funds in Paris, sovereign wealth funds in Saudi Arabia, and insurance firms in Tokyo — they all played this game. But now, this trade may be unwinding. Today, U.S. equities are slipping. The dollar is softening. And what once magnified gains is now doubling the pain. And what's really unnerving investors isn’t just the losses - it’s the speed ... (full story)
