Yu: Being Long Dollar Eats Into Reflation Trade

The video discusses the impact of the dollar on US and global reflation, highlighting the challenges of currency trends. It explores the debate between capital flows and interest rates, with a focus on the Eurozone's performance despite political risks. The discussion also covers the potential surprises in market pricing and the implications of financial conditions on equities. Finally, it advises on long-term investment strategies, emphasizing the importance of staying invested despite political uncertainties.

What is the main argument against going long on the dollar according to the first section?

• It supports US reflation.

• It decreases oil prices.

• It undermines global reflation.

• It strengthens the Euro.

What was underappreciated about the Eurozone in 2016?

• Its political stability.

• Its economic performance relative to expectations.

• Its currency strength.

• Its trade agreements.

How does the weakness in the euro potentially benefit the Eurozone?

• By strengthening political ties.

• By lifting earnings.

• By increasing exports.

• By reducing inflation.

What is a potential consequence of tightening financial conditions in the US?

• Struggle for equities.

• Increase in oil prices.

• Decrease in interest rates.

• Strengthening of the Euro.

Why is it advised not to amend long-term investment strategies based on political events?

• Political events have no impact on markets.

• Long-term strategies are unaffected by short-term events.

• Political events always lead to market gains.

• Short-term events are easy to predict.