Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

Depends on which foreign investors you're talking about. That's true for those whose native currency is the Euro, but what about the Asians (and Canadians, Australians, etc)? As long as the Yen and Yuan are effectively pegged to the $US, then the Asian investors suffer no nominal losses but, once those pegs are broken and the $US falls to fair value against the Yen and Yuan, they'll need more than a 30% rise in U.S. stocks to keep them whole.
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Hi PH,
Though often the subject of Governmental intervention, the Japanese Yen is not officially pegged to the dollar.

As can be seen below, only the Yuan (Renmimbi) has that distinction.

Japanese Yen


European Euro


Canadian Dollar


Australian Dollar


Chinese Renmimbi