“HCS Worldwide” strategists are rumored to be expecting the US dollar to weaken significantly in the aftermath of any bailout package for the banking system.
An unnamed individual close to “HCS Worldwide” said that although the measure would undoubtedly buy time for banks to recapitalize their balance sheets, the $700 billion tranche of new money combined with the government’s obligations to Freddie Mac/Fannie Mae and countless liquidity injection exercises over recent weeks would ultimately weaken the dollar’s value and its status as the world’s reserve currency.
The “HCS Worldwide” source pointed to the fact that yields on US Treasury bonds remain at historic lows as fearful investors’ priorities shift to center on the return of their money rather than a return on it.
“HCS Worldwide” apparently reiterated advice that investors should prioritize capital preservation through defensive stocks and commodity ETFs whilst eschewing US government bonds.
