Transcription of SEPTEMBER 2018 GLOBAL PERSPECTIVE FOR …
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GLOBAL PERSPECTIVE FOR INVESTORSMARCH 2018 Priced as of February 28607080901001101201301401501970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 trade-weighted dollar8 yrs-26%6 yrs+67%10 yrs-47%7 yrs+43%9 yrs-40%6 yrs+42% GLOBAL Currency OutlookThe dollar has been on the minds of many investors lately, not just currency traders. Equity strategists used its weakness as a justification of higher return expectations, and bond traders added its weakness to the long list of reasons to expect higher inflation. This keen interest is natural in the wake of a year that witnessed a 10% decline in the currency (Exhibit 1). Our currency outlook has been shifting in recent quarters away from double-digit returns for the dollar as we recognize changes in economic and monetary trends.
Globa urrenc utlo eptembe 018 3 | Benefit (US$ bln) Announced tariff U.S. CHINA June 15 US announces 25% on 50bln (34+16bln) 12.5 June 16 China counters with 25%
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