The US dollar regains the status of "most attractive asset", arbitrage trading may severely impact global stock markets.
According to the Wise Financial APP, the US dollar is reclaiming its position as the most attractive global investment asset, contrary to the remarks about "selling the US" transactions which previously sparked concerns about the future of the global reserve currency. According to calculations, a simple strategy is to borrow low-yielding currencies (such as the Japanese yen or the Swiss franc) and invest the funds in the US dollar. Once the volatility factors of these assets are taken into account, this strategy seems to be able to achieve returns higher than the expected return rates of European stocks and other markets.
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