US companies have over $2.5 trillion cash hoarded outside the US. With the massive US tax cut for corporates nearly through, how much of this money will move back to the US? And what will be the impact on us outside the US? What do the Finance people among u say?
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Yields in USA anyways very low say the US 10 year yields 2.5% compared to a 6-7 in EMs. So the investable surplus might move out again. Plus onshre cash in USA ($1.9 tr) is already very high with few benefits...
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Fair point. But what about currency risks on EMs?
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Yes they do exist but can be hedged although not completely. Even after hedging costs, they do provide better returns. But if one is predicting a dooms day scenario in currency mkts then no one can help...
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