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Chinese Investor Strike?

April 17th, 2018 · No Comments

  • Macro lessons for investors part II.
  • Some argue that the US trade deficit is simply the result of big US public sector deficits and debts (which need to be refinanced), needing foreign investors.
  • As a result, they argue, the Chinese could strike back by stop buying US Treasuries, or even dumping their $1T+ Treasury holdings.
  • While this analysis gets it partially right, we show you what’s wrong with it.

Source: Chinese Investor Strike? | Seeking Alpha

Tags: The Markets