Monday, February 6, 2017

Everyone will suffer in a Trade War

I am not sure what Donald Trump will do next, and I am not even sure even he knows what he will do next. He has been saying a lot of things, including having trade wars. So, I suspect he will have trade wars with other economies going ahead. Trade wars have always been bad for everybody, and no one has ever won a trade war. If he does do it, it will be bad for us all - be it India or the US; everyone will suffer.

I am not really investing. I am still in a wait-and-watch mode. I did buy more in Russia recently. Russian government bonds have very high yields. The Rouble has probably made its bottom. So I did buy more Russian government bonds. However, for the most part, I am watching if trade wars are going to erupt; and then none of us will have a good time.