‘America First’ Risks Making U.S. Assets a Costly Last Resort
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Trump policies have sparked haven flow into dollar, Treasuries
- U.S. markets ‘priced to perfection’: JPMorgan Asset’s Kelly
America First seems to have become an investment theme by default, as money managers turn to the U.S. in a fraught global environment. The danger is that these flows may be concealing risks in the world’s safe haven.
The prospect of the strongest economic expansion since 2005 has helped draw investors to American markets. Geopolitical uncertainty is magnifying the move, despite rising domestic political risks. The percentage of global bond-fund allocations to the U.S. reached 62.6 percent in August, the highest since 2010, according to the Institute of International Finance. If sustained, this demand could exacerbate distortions: Robust growth and Federal Reserve rate hikes haven’t managed to push 10-year Treasury yields above 3 percent, and credit spreads are near their tightest levels in a decade…
‘America First’ Risks Making U.S. Assets a Costly Last Resort
