When the
global tension increases, we will expect more uncertainty appears in the global
market and the financial market should fall on increasing uncertainty. On the
other hand, investors will switch to more secure assets, such as the government
bonds. The US bonds have been investors' best choices for safe security
holdings. However, under today's circumstance, some investors may ask if the US
Treasury Bills are still solid secure.
I do not think
that the results of the US-Russian competition and the US-China competition
will affect the security of the US Treasury Bills, unless if a war happens. As
we can see that although Britain is no longer that Empire, its government bonds
remain solid secure and I believe this will also happen to the US government
bond no matter the results of the competitions the US is fighting.
No comments:
Post a Comment