Looks like I’m the only one thinking all of this is a set-up for a significant revaluation of the Chinese Yuan.
Notice what’s happening is that commodities (dollar denominated) have been dropping fast - while the dollar is going up. As if the commodities are being divested in dollar terms. This would transfer the assets from commodities, initially to the dollar they are sold in.
Watch for the dollar to begin dropping next. As all those dollars are moved into Yuan.
Next week when America is pressing China about trade, China will finally agree to revalue - since the alternative is tariffs. Tariffs would be money for America, while revaluing the Yuan does not mean money for America. China will revalue. Making all those Yuan immediately worth much more.
Note at that point, the new more powerful Yuan will be redeployed - right back into all those assets which are being sold off - and you’ll see an asset bull run like never before.
Final value of all the (currently falling) assets, will be significantly higher than before the current drop - by the proportion of the revaluation.
If the Yuan value doubles - asset prices will double.
That’s my conspiracy theory.
It might be possible to trade a revaluation - by buying Yuan first.
Now.
While the value of the Yuan is being held artificially low...
Or not. We shall see soon enough.
Why do you think Foxconn recently started work at a new factory in Brazil? I think within 7-10 years most of the consumer electronics built by Foxconn could be coming from Latin America, mostly because of lower transportation costs.
Mine is that Italy is really behind everything and will suddenly rise to rule Europe. Thinking, "been there, done that" after about a month, though, they'll hand control over to group in Kansas who collects antique Fiats. ;)
I like odd conspiracies instead of your run of the mill doom and disaster. Not that handing a bunch of Fiat collectors control of Europe couldn't turn into a disaster, it's just that no one expects the Kansas Imposition.