Where Investors Can Stash Their Cash as Tariffs Kick In
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Some still like yen, which has been hit by Fed tightening
- Gold’s allure has been damaged by strengthening greenback
The U.S. might be the trigger for escalating trade tensions with China, but it turns out that its currency could still be the best place for global investors to find safety as the dispute comes to a fresh crossroads Friday with tariff increases set to take effect.
That’s because the conflict is unfolding alongside what could be an even more powerful dynamic: U.S. monetary-policy normalization. An appreciating dollar, propelled by expectations for stepped-up Federal Reserve tightening, has hammered a wealth of markets since April, when benchmark 10-year Treasury yields first pricked through 3 percent. That’s left some traditional havens — like gold — less of a buy, while offering pockets of value — such as Australian equities — in areas investors might not typically have considered…
