2 Comments

I feel for you Russell

I have also personally been bearish (underweight) US assets for about 9 years now. But the ability of the US to attract capital flows remains unprecedented. I thought that the events of 2008-9 would permanently impair Wall St's status and ability to raise capital. To some degree that was correct, certainly households deleveraged however it just channelled funds from overseas into another tech bubble instead.

I'm not sure if there's any precedent for this in history even for reserve currency issuers: did Britain attract such massive capital inflows in the late Victorian period?

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