Reading Alan Ks article and this crossed my mind as an interesting part
"Big Beautiful Bill also contains a "revenge" provision that would allow the US government to impose extra taxes on foreign investors whose home countries have policies America doesn't like, which is not the sort thing that's going to endear a country to foreign investors" Hint its Revenge Tax or Section 899
Buying some shares last week gave me options to buy them on NYSE or the TSX. Both had no brokerage fee on my platform. My thoughts or actions are irrelevant of course. TSX got the trade from my investment.
"Examples of America's unseriousness have been building to the point where the US isn't even a comprehensible ally, let alone a reliable one, or a safe place to invest — global investors are now steadily reducing their exposure to American assets."
US bond market has been in the spotlight recently
"Potential Decrease in Treasury Yields for Foreign Investors
If enacted, the new tax could sharply reduce the effective yield on US Treasuries for affected foreign investors. Deutsche Bank estimates that the de facto yield on US Treasuries could drop by nearly 100 basis points for these investors4.This makes US government bonds less attractive compared to alternatives like German bunds, especially for countries directly targeted by the new tax regime.
Risk of Capital Outflows
Analysts warn that the bill could trigger capital outflows from the US, as foreign investors seek safer or more predictable markets. With the US already running a sharply negative net international investment position, any reduction in foreign appetite for Treasuries could make it more difficult and expensive for the US to finance its budget and current account deficits.Barclays notes that diminished demand for dollar-denominated assets could further erode the value of US bonds and the dollar itself
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Should I pull my USD$ investments, what is the likely exchange rate impacts on myself is my concern. Trump trashing American as a safe and secure investment location goes way above my pay grade of course.
America's economic and political chaos has implications for Australia - ABC News
