I believe that the dollar will continue to rise when the effective fed rate is only at 2 1/3%. To combat the inflation, the fed needs to hike the rate in the teens -- we have a long way to go. In addition, institutional investors around the world are rotating out of regional equities and piling in on USD dominated fixed-income assets, adding additional demand for dollar.
Screen Shot 2022-09-19 at 2.24.37 PM.png(1.03 MB, 下载次数: 0)
Investment Vehicle
To participate in dollar's rise, there are a number of ETFs that track the dollar index. One of them is UUP, which I have a position in.
As a Chinese student with tuition financed by my parents from China, I find UUP a potential good hedge against Yuan's depreciation.
Discussion
What do you guys think? Are there any other ways to generate above-average yields and capital gains in this market?
I think distressed debt and project finance can be luractive but I ain't that rich to get in those games.
Disclaimer The author of this idea presently has a long position in securities of UUP and may trade in and out of these positions without notice. The data contained herein are prepared by the author from publicly available sources and the author's research, opinions and estimates. No representation or warranty is made as to the accuracy of the data or opinions contained herein. Please do your own research.