Posted on 09/28/2022 4:20:16 AM PDT by FarCenter
TOKYO – Wall Street suits, run for the hills.
So far this year, the surging dollar has left a trail of carnage across Asian and European economies, currencies and bourses. Now, it is likely headed for home territory.
Count Michael Wilson, Morgan Stanley’s chief US equity strategist, as among those fearing the dollar’s rally is creating an “untenable situation” for US stocks and other assets, pointing to similar periods of exchange-rate excess in the past.
“While hard to predict such events, the conditions are in place,” Wilson notes, referring to sovereign debt issues in 2012, the Lehman Brothers crisis of 2008 and the dot-com crash in 2000.
There is already a chasm between the strong dollar and weak US equities. While the US Dollar Index has risen nearly 20% this year, the S&P 500 Index has fallen 23%, down to the 3,655 level. In Wilson’s view, the S&P 500 will reach an “eventual low” of 3,000-3,400 by year-end 2022 or early next year.
(Excerpt) Read more at asiatimes.com ...
It also makes the foreign sales of US multinationals worth 23% less, a substantial impact on their revenues.
The (apparently) globalist writer just had to throw this in there, didn’t he (quoting NYU globo-weenie)?
“New York University’s Nouriel Roubini, meantime, warns that markets and the global media “vastly underestimate the severe risks” from the new Italian government led by “an extremist, nativist, effectively fascist [Giorgia] Meloni.”
Extremist? Not that I can tell.
Nativist? Perhaps.
Effectively fascist? Isn’t everyone who disagrees with globalism a fascist? That’s pretty much how they ‘splain it.
Falsehoods oozing forth from academia are nothing new to me. But truth suffers when hysteria rises.
Hells bells; give the lady a chance. If she’s nativist, it’s because like most civilized countries, hers is being overrun with losers from sh!+hole countries. Maybe conservatives would like their native land back.
He probably meant "semi"-fascist.
Regards,
That is a disappointing comment by Roubini. I thought he was apolitical, apparently not.
The Thai Baht just went to 38 Baht to $1. Best exchange rate I’ve experienced since 2007. Pattaya calling.
Afraid the dollar is getting weaker vs actual goods. Its doing well on forex market only because other currencies are even weaker atm.
Yes I think “semi fascist“ is the way the cadaver describes us.
I guess that I should have properly attributed that quote - I just assumed that everyone here would recognize it. While it really stuck in my craw, other FReepers might not have really taken note of it.
Regards,
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