Mark Dowding
Appearances
The Journal.
Taking Stock of the ‘Sell America’ Trade
So purely looking at things from a currency perspective, I think it's the yen that I have at the top of my list. But I think there are other global currencies that also look relatively attractive. I mean, I'd rather own European stocks denominated in euros or Japanese stocks denominated in yen at the moment.
The Journal.
Taking Stock of the ‘Sell America’ Trade
Those overseas markets, which maybe have been underloved and overlooked for a period, are now likely to see a bit more attention. We're also looking at a world where there's more of a sense in which there's more of a home bias going forward, more of a sense of let's keep more of our money at home.
The Journal.
Taking Stock of the ‘Sell America’ Trade
And of course, if those countries do keep their money more at home, it means that the US is going to benefit less from overseas investors supporting their markets. Time will tell, we'll have to see.
The Journal.
Taking Stock of the ‘Sell America’ Trade
Investors end up investing in the US almost because there's not enough choice to go shopping in elsewhere in the world.
The Journal.
Taking Stock of the ‘Sell America’ Trade
Some of the policy announcements that we have witnessed have led investors to question whether the US economy will continue to grow as strongly as it has been growing in the past. And that's actually led us to adjust our view and actually turn more away from being one-time dollar bulls towards being dollar bears.
The Journal.
Taking Stock of the ‘Sell America’ Trade
All of a sudden, there's a bit of a rethinking about how much can you rely on the U.S. if you're located overseas. And all of a sudden, the U.S. is looking like a less attractive destination for your capital. It's no longer looking as safe as it once was.
The Journal.
Taking Stock of the ‘Sell America’ Trade
We're familiar with the sell America story. Sell it all. Sell the bonds, sell the stocks, sell the currency. Look, I think it's less about selling it. It's more a question about stop buying it. And if people stop buying, effectively it has the same effect, doesn't it?
The Journal.
Taking Stock of the ‘Sell America’ Trade
The business I'm overseeing is managing funds which invest in government bonds and other sorts of bonds for investors located worldwide.
The Journal.
Taking Stock of the ‘Sell America’ Trade
Within all of the assets that we manage, the bulk of the assets, you would say, are actually allocated to US dollar securities.
The Journal.
Taking Stock of the ‘Sell America’ Trade
Well, I guess, of course, it goes without saying that the US is the world's largest economy. It's the economic superpower. Obviously, the US has got the world's largest and deepest and most sophisticated financial markets. And sometimes we use the abbreviation TINA, which stands for there is no alternative.