Item — HN Reader

Whatever you need to tell yourself. For those of us outside the US many of us are tired of the antics. Most of the rest of the world is long tired of Americans shouting everyday that they are the best and they should come first.

Say it enough times and we’ll look for other more relational and reliable trading partners.

2 comments

There's nothing substantive about a comment like this. The US has dominated indices for decades and the amount of money those indices have generated non-US investors is huge. Belief in the US based indices domestically and abroad is still superior, just look at the numbers.

The US has a gargantuan debt problem to handle, and reciprocity in tariffs seems far from an 'antic.'

That belief was based on a lot of suppositions like the gold in Fort Knox being there(had that fight with Europe already and resolved it until recently), the backing of NATO allies, the backing of long term allies like Canada and Britain who we have threatened with annexation and referenced as losers militarily, respectively in the past month, or even basic rule of law in line with our own systems.

We have become a source of absolute chaos and until we settle down into an understandable and, critically, stable set of behaviors three is no belief in us.

You can’t rely on past behavior as a source of trust for counter parties when you are simultaneously telling those counter parties that every agreement you enter into is worth nothing upon tomorrow.

Past performance is no guarantee of future performance.

The US is actively stopping honouring its international engagements and relations. It’s already starting to have an effect. Confidence once lost is hard to regain the same goes for trust.

There is, actually. Instability where you win or lose based on which loony is next in driver's seat is not super appealing for folks on the outside, you know, those who get the stick.

WRT tariffs, both economists and more layman's explanations make it clear that, at the very, very least, the Trumpian view is out of touch with reality.

For example country A, having a massive trade deficit with country B, because you buy raw materials which you refine into products and sell to country C can absolutely be a good thing for country A - and it's very conceivable that imposing a tariff on the materials from B just undermines the profitable business in your country, as the margins from that industry is squeezed by the tariffs you imposed.

For an interesting walk through tariffs, subsidies and whatnot, see https://m.youtube.com/watch?v=fSXGUGFncgk&pp=ygUPcGVydW4gdHJ... (Perun on trade wars).

The headline is what people want to read but has little to do with reality.

My non-US positions have done shockingly nothing the past few years.

Chinese equities were practically being given away a year ago.

At some point there was going to be rotation but believe what you want. Of course, news headlines about the market are never wrong!