Currencies to own as recession takes hold

This post first appeared on Patreon on 9 Jul 2018

Last week, I wrote up a macro bond play that involves three parts: currencies, spread differentials and default risk. I want to hone in on one of those three today: currencies. And here's the lead:

"If the U.S., for any reason, cuts its imports from a trading partner, that country’s economy and currency both weaken, so it buys less from U.S. companies." - @greg_ip on how tariffs hurt exporters too https://t.co/ju5ZZASJPa
— Edward Harrison (@edwardnh) July 9, 2018
China's economy and currency are hurting
This is the macro accounting that a lot of people looking at the budding trade war don't appreciate. The trade war between the US and China is leading to a weaker Chinese economy and a weaker Chinese currency. This is particularly t...


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