Tariffs are NOT Reciprocal
How did the Trump Administration come up with these tariff rates? Why would a nation like Madagascar, for example, with a small economy, be hit with a 47% tariff? Reciprocal [...]
Understanding Share Prices will Rise When a Currency Falls
QUESTION: Hi Marty,
The Venezuela vertical market chart you showed in your 9/7 post is quite interesting. To see historic examples is one thing, to see it happen in real-time, quite another.
The question I have is this – How can one profit from such a move if the local currency is simultaneously plunging?
Venezuela aside, if this type of event comes to pass in the US or Europe how can we (small investors) protect ourselves?
It seems to me that the best you can hope for is to trade the vertical market brilliantly which, in reality, simply be treading water because the currency you must ultimately exit into has been equally devalued!
Your insights and thoughts would be greatly appreciated by us all!
S.M.
ANSWER: In this case, there is no opportunity for foreign investors. It is purely a hedge against the currency for domestic citizens. You cannot get involved for the rise in the market is due to the fall in the currency. A foreign investor must subtract the loss in the currency against the rise in the equity. Then there is the risk of nationalization. Nonetheless, this is what will happen to all markets when the confidence in government suddenly collapses. There are no contingency plans at this moment. They are simply hunkering down and assume they can raise taxes and pass laws to prevent the inevitable. They are sewing the seeds of their own demise by avoiding the reality of what has been done economically for decades.
Latest Posts
Eric Adams Leaves the Democratic Party
New York City Mayor Eric Adams, the man who fought tooth and nail to maintain sanctuary city status for migrants, has abandoned the Democratic Party. The Democrats have become so [...]
Trump vs Putin
https://www.armstrongeconomics.com/wp-content/uploads/2025/04/Zelensky-Reniggs.mp4 QUESTION: I take it you agree with Putin that Zelensky is not legitimate and that Trump is wrong. Would you care to explain your position? WG ANSWER: I [...]
Market Talk – April 3, 2025
ASIA: The major Asian stock markets had a negative day today: • NIKKEI 225 decreased 989.94 points or -2.77% to 34,735.93 • Shanghai decreased 8.12 points or -0.24% to 3,342.01 [...]
