Equity Rotations, Cash-Secured Puts, and Gold Dislocations - Lyn Alden
Could Index Funds Be ‘Worse Than Marxism’?
theatlantic.com
In 1944, the US led other countries in putting together the Bretton Woods system, in which most currencies were pegged to the dollar, and the dollar was pegged to gold.
In 1971, however, the US defaulted on this system, rendering the dollar no longer redeemable for or fixed against gold. After that, all currencies rapidly fell vs gold, and along wit
... See moreLyn Alden • Economic Japanification: Not What You Think
Myself and many others would argue that a major currency devaluation is a type of default. In that sense, the US government defaulted on bondholders in the 1930s by devaluating the dollar vs gold, and then again in the 1970s by decoupling the dollar from gold entirely. The 2020-2021 period was also a type of default, in the sense that the broad mon
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Second, the recent escalation of trade tensions coupled with the threat of possible financial tensions, rising US debt levels and a softening of the US exorbitant privilege may have caused some global investors to reassess the extent of their dollar exposure. So far, markets developments have been orderly, with an increase in demand for dollar hedg
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