Is Investor Sentiment Shifting Away from the U.S.?

[MarkSB]

The Panicans are sounding the alarm again, and trying to make the markets plunge!​

The 10 year treasury yield had its largest weekly rise since 2001, and the dollar is devaluing at the same time... so what? When a patient gets out of surgery, they will be sick for a little while before they get better.​

If the president was a democrat, the media would be completely silent about this.

---------------------------------------------------------------------------------------------------------------------------​

Fed’s Kashkari says rising bond yields, falling dollar show investors are moving on from the U.S.​

Minneapolis Federal Reserve President Neel Kashkari said Friday that recent market trends show investors are moving away from the U.S. as the safest place to invest while President Donald Trump’s trade war escalates.​

​

With Treasury yields rising and the U.S. dollar sagging against its global counterparts in recent days, the trends are running counter to what you might normally see, the central bank official said during a CNBC “Squawk Box” interview.​

​

“Normally, when you see big tariff increases, I would have expected the dollar to go up. The fact that the dollar is going down at the same time, I think, lends some more credibility to the story of investor preferences shifting,” Kashkari said.​

​

The 10-year Treasury yield has surged this week after Trump announced his intention to slap a 10% across-the-board tariff against U.S. trading partners and threatened to impose even harsher select levies before backing down Wednesday.​

​

At the same time, the greenback has slumped more than 3% against a basket of global currencies, with moves potentially signifying a turn away from safe-haven U.S. assets.​

​

“Investors around the world have viewed America as the best place to invest, and if that’s true, we will have a trade deficit. So now one of the ways that expresses itself is in lower yields across asset classes in America,” Kashkari said. “If the trade deficit is going to go down, it could be that investors are saying, OK, America no longer is the most attractive place in the world to invest, and then you would expect to see bond yields go up.”​

​

​

 

[iluvatar5150]

If the president was a democrat, the media would be completely silent about this.

A Dem president wouldn't have done this in the first place.

 

[Fantine]

While Trump is in office, if I were a foreigner I wouldn't invest here, travel here, or have anything to do with the US. If my family members besides me could get Irish citizenship, I'd consider leaving.

 

[MarkSB]

A Dem president wouldn't have done this in the first place.

I'd say its very likely that none of the other Republican candidates who were in the primaries against Trump would have done this, either.

But none of them know the Art of the Deal. And none of them can save America... only Trump can.

 

[Fantine]

I'd say its very likely that none of the other Republican candidates who were in the primaries against Trump would have done this, either.

But none of them know the Art of the Deal. And none of them can save America... only Trump can.

Was "Deal" a misspelling?

 

[iluvatar5150]

Was "Deal" a misspelling?

debt?
steal?
fealty?

 

[FAITH-IN-HIM]

I really think the Panicans are sounding the alarm again, and trying to make the markets plunge.​

The 10 year treasury yield had its largest weekly rise since 2001, and the dollar is devaluing at the same time... so what? When a patient gets out of surgery, they will be sick for a little while before they get better.​

If the president was a democrat, the media would be completely silent about this.

​

​

​

One of the issue with today’s conservatism is the use of clichés like “When a patient gets out of surgery, they will be sick for a little while before they get better” or “If I can run my household within the budget, why can’t the US government spend within its budget?”. The world economy is not equivalent to a cancer patient, nor is the US government similar to personal household finances. Comparing US government financial management to individual finance or equating US trade policy with medical conditions is misleading and demonstrates a lack of understanding of economic principles.

This type of argument has no relevance when discussing US trade policy.

 

[MarkSB]

Was "Deal" a misspelling?

I assume you're implying that it should be "steal" instead?

Yet another example of how the radical left will not stop accusing Donald Trump. He fixes the economy, and they try to bring charges against him. It boggles the mind, and is difficult to comprehend.

 

[Always in His Presence]

Multiple companies are still putting big money into the U.S. economy.

• Johnson & Johnson: On Friday, Johnson & Johnson announced manufacturing, research and development, and technology investments of more than $55 billion in the U.S. over the next four years. They say it represents a 25 percent increase in investment compared to the previous four years under President Joe Biden, crediting an increase in investment levels to the 2017 Tax Cuts & Jobs Act. Also on Friday, the company broke ground on a 500,000-square-foot biologics manufacturing facility in Wilson, North Carolina.
• SoftBank: On Monday, SoftBank CEO Masayoshi Son visited Trump at Mar-a-Lago and announced a $100 billion investment over the next four years with a promise to create 100,000 jobs focused on artificial intelligence and related infrastructure, according to CNBC.
• United Arab Emirates: After a meeting with Trump, the United Arab Emirates committed to a 10-year, $1.4 trillion agreement with the U.S. that will sustain existing investments in AI infrastructure, semiconductors, energy, and American manufacturing, according to Reuters.
• Taiwan Semiconductor Manufacturing Company: Semiconductor giant TSMC announced earlier this month in response to Trump's tariffs threat on foreign chips that it would invest another $100 billion into its U.S. operations. The anticipated new chip fabrication plants, two advanced packaging facilities, and a new research and design center will increase the company's total investment in Phoenix to $165 billion—the largest foreign direct investment in U.S. history.
• In January, Trump announced a $500 billion private investment in AI infrastructure led by OpenAI, Oracle and SoftBank.
• Apple: Tech giant Apple announced a $500 billion investment.
• Nvidia: On Thursday, the White House announced that chipmaker Nvidia would invest hundreds of billions of dollars over the next four years in U.S.-based manufacturing operations.

 

[MarkSB]

One of the issue with today’s conservatism is the use of clichés like “When a patient gets out of surgery, they will be sick for a little while before they get better” or “If I can run my household within the budget, why can’t the US government spend within its budget?”. The world economy is not equivalent to a cancer patient, nor is the US government similar to personal household finances. Comparing US government financial management to individual finance or equating US trade policy with medical conditions is misleading and demonstrates a lack of understanding of economic principles.

This type of argument has no relevance when discussing US trade policy.

Indeed... I agree 100%. It's a shame that we are where we are. And there are still people in this forum that are not willing to admit that this is a screw up of epic proportions.

Poe's law is true indeed.

 

[MarkSB]

Multiple companies are still putting big money into the U.S. economy.

• Johnson & Johnson: On Friday, Johnson & Johnson announced manufacturing, research and development, and technology investments of more than $55 billion in the U.S. over the next four years. They say it represents a 25 percent increase in investment compared to the previous four years under President Joe Biden, crediting an increase in investment levels to the 2017 Tax Cuts & Jobs Act. Also on Friday, the company broke ground on a 500,000-square-foot biologics manufacturing facility in Wilson, North Carolina.
• SoftBank: On Monday, SoftBank CEO Masayoshi Son visited Trump at Mar-a-Lago and announced a $100 billion investment over the next four years with a promise to create 100,000 jobs focused on artificial intelligence and related infrastructure, according to CNBC.
• United Arab Emirates: After a meeting with Trump, the United Arab Emirates committed to a 10-year, $1.4 trillion agreement with the U.S. that will sustain existing investments in AI infrastructure, semiconductors, energy, and American manufacturing, according to Reuters.
• Taiwan Semiconductor Manufacturing Company: Semiconductor giant TSMC announced earlier this month in response to Trump's tariffs threat on foreign chips that it would invest another $100 billion into its U.S. operations. The anticipated new chip fabrication plants, two advanced packaging facilities, and a new research and design center will increase the company's total investment in Phoenix to $165 billion—the largest foreign direct investment in U.S. history.
• In January, Trump announced a $500 billion private investment in AI infrastructure led by OpenAI, Oracle and SoftBank.
• Apple: Tech giant Apple announced a $500 billion investment.
• Nvidia: On Thursday, the White House announced that chipmaker Nvidia would invest hundreds of billions of dollars over the next four years in U.S.-based manufacturing operations.

The article which you're citing is from 3/21 - which was before "Liberation Day". So none of this even relates to the analysis which is in the OP.

 

[Desk trauma]

A Dem president wouldn't have done this in the first place.

Nor would any republican president but this one.

 

[iluvatar5150]

Multiple companies are still putting big money into the U.S. economy.

• Johnson & Johnson: On Friday, Johnson & Johnson announced manufacturing, research and development, and technology investments of more than $55 billion in the U.S. over the next four years. They say it represents a 25 percent increase in investment compared to the previous four years under President Joe Biden, crediting an increase in investment levels to the 2017 Tax Cuts & Jobs Act. Also on Friday, the company broke ground on a 500,000-square-foot biologics manufacturing facility in Wilson, North Carolina.

"Broke ground" today == "started planning" back in the Biden administration.

 

[FAITH-IN-HIM]

I'd say its very likely that none of the other Republican candidates who were in the primaries against Trump would have done this, either.

But none of them know the Art of the Deal. And none of them can save America... only Trump can.

You are correct; None of the GOP primary candidates in 2024 would have reversed US trade policy like President Trump has. No other GOP president has suggested reversing US trade policy during there time. The reason no conservative president or GOP official has proposed Trump's actions is that they do not work.

In 1980, the total wealth of the United States was $14.45 trillion. Today, it is $139 trillion, which represents an 892% increase over the past 50 years. Despite multiple recessions, including the Great Recession, the pandemic, war on terror, and major terrorist attacks, the U.S. economy has grown by 892%. Over the past 50 years, U.S. economic policy has contributed to this growth.

but President Trump and his supporters want to reverse US economic policy.

 

[Hans Blaster]

"Broke ground" today == "started planning" back in the Biden administration.

Or earlier. The lead times on these kinds of investments is long. Anything announced to start work this year (or next) did not start or reach the the decision point this year. If some company announces plans to start building a plant in Summer 2027, then we might have something related to Trump II.

 

[FireDragon76]

Trump is wrong. Trade isn't the problem. It's people at the top extracting wealth from people at the bottom in the form of lopsided taxation policies and underinvestment in infrastructure and services. More taxes in the form of tariff's wont help.

 

[FAITH-IN-HIM]

Trump is wrong. Trade isn't the problem. It's people at the top extracting wealth from people at the bottom in the form of lopsided taxation policies and underinvestment in infrastructure and services. More taxes in the form of tariff's wont help.

As a young conservative, I was taught to take personal responsibility, work hard, improve myself, and pursue higher education. I did so, and today, although not wealthy, I have a good life. I credit God and my upbringing for teaching me personal responsibility.

Today, many conservatives seem more inclined to attribute blame to others and show disdain for higher education and educators. They appear to favor clinging to past lifestyles, such as completing high school, possibly attending trade school, and then working in factories like their grandparents did to achieve a good American life reminiscent of the 1950s. As a consequence, many conservatives, especially those in rural areas of the United States, have felt marginalized by the economic growth seen over the past five decades. They attribute their challenges to factors such as immigration, trade policies, and the actions of elites and educators.

President Trump has convinced some that expelling immigrants and confronting foreign nations will restore 1950s America, where Americans worked in factories, bought homes and cars, and lived happily.

Sadly those days are not coming back.

 

[FireDragon76]

As a young conservative, I was taught to take personal responsibility, work hard, improve myself, and pursue higher education. I did so, and today, although not wealthy, I have a good life. I credit God and my upbringing for teaching me personal responsibility.

Today, many conservatives seem more inclined to attribute blame to others and show disdain for higher education and educators. They appear to favor clinging to past lifestyles, such as completing high school, possibly attending trade school, and then working in factories like their grandparents did to achieve a good American life reminiscent of the 1950s. As a consequence, many conservatives, especially those in rural areas of the United States, have felt marginalized by the economic growth seen over the past five decades. They attribute their challenges to factors such as immigration, trade policies, and the actions of elites and educators.

President Trump has convinced some that expelling immigrants and confronting foreign nations will restore 1950s America, where Americans worked in factories, bought homes and cars, and lived happily.

Sadly those days are not coming back.

You are right, the manufacturing jobs are never coming back. Trump is either ignorant or lying about that. It has little to do with Chinese or Mexicans taking those jobs.

The US actually has more industrial output than in the 1970's. Alot more. However, most of that output has increased due to automation, which means fewer workers are needed to produce more goods.

 

[FAITH-IN-HIM]

You are right, the manufacturing jobs are never coming back. Trump is either ignorant or lying about that. It has little to do with Chinese or Mexicans taking those jobs.

The US actually has more industrial output than in the 1970's. Alot more. However, most of that output has increased due to automation, which means fewer workers are needed to produce more goods.

Future jobs and factories will require individuals who can write code to manage robots rather than workers to perform physical tasks.

However, many conservative Americans view higher education with contempt and feel it threatens their way of life.

 

[FireDragon76]

Future jobs and factories will require individuals who can write code to manage robots rather than workers to perform physical tasks.

However, many conservative Americans view higher education with contempt and feel it threatens their way of life.

Service jobs are growing. If more were unionized and we had universal healthcare, they could pay a living wage.

In the long term, UBI will be necessary to deal with technology rapidly advancing. Eventually, those robots are going to code themselves.