US dollar (USD) dominance continues to decline as wealthy investors and country leaders take steps to reduce their exposure to the currency. What are the potential consequences of such trends?
As the global economy struggles to get back on its feet after the COVID-19 pandemic, wealthy investors and nations are betting billions against US stocks amid growing recession fears. The move is a sign of the rising uncertainty about the future of the US economy, which has been hit hard by the pandemic.
One of the reasons for this trend is the view that the US stock market is overvalued and due for a correction. With stock prices at all-time highs, many investors and nations worry that a bubble is waiting to burst. As a result, they are looking to hedge their bets and protect their assets by shorting US stocks. Instead, using other safe havens to increase profitability.
Betting Against US Equity
Shorting is a common investment…
