1176 days ago
Global reserve currency's popularity usually lasts 100 years
So far, we've seen Portugal, Spain, the Netherlands, France, Britain, and now the USA. Now that the dollar is weakening, what will replace it? One idea: technology.
1176 days ago
Second major lockdowns will hit the economy - but not as hard
The graph below shows the estimates of weekly GDP as % change of previous year. It seems that the latest round of lockdowns will hit the economy again - but not as hard. According to GS analyst expressing himself for Britain: “the sensitivity of economic activity to covid-19 restrictions has diminished significantly since the first lockdown.” HSBC is also backing up this statement, showing that Germany will remain undeterred by the renewed lockdown. Covid-19 is not gone, but we surely know how to fight it better.
1177 days ago
Russia has more gold than dollars
For the first time, Gold surpassed dollar assets in Russia's reserves. This indicates the diminishing trust that Russia puts in US dollars. Note that the data are published with a 6 months delay. While the dollar is the world's preeminent currency (60% of all foreign currency reserves globally according to the IMF), the euro is Russia's top reserve holding, with $165 billion, vs. $125 billion in dollars and $128 billion of gold.
1178 days ago
S&P 500 index vs. Bloomberg Commodity Index
Since the low of 2009, commodities went down 20%, while equities went for a 510% surge. Is there a mean reversion ahead and/or should commodities go back up soon?
