Dollar's Reign Defies Critics

Market Sizzle: Dollar dominance, Nvidia’s $10B boost, Toyota bets on hybrids, bond boom aids housing ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more [Dollar's Reign Defies Critics]( Market Sizzle: Dollar dominance, Nvidia’s $10B boost, Toyota bets on hybrids, bond boom aids housing [Josh Belanger](joshbelanger) Jun 18 joshbelanger   [READ IN APP](   Ever thought your golf swing could help land your dream job? Corporate America is teeing up to hire strong golfers who can schmooze clients on the course. Hybrid work and a killer drive could be your ticket to success. Who knew hitting the green could be so green? US Dollar Dominates Globally Since COVID-19, the US grabbed nearly one-third of global investment. This is a big jump from the 18% share before the pandemic. High US interest rates have attracted foreign investors. President Biden's policies to boost green energy and chip production also helped. Before the pandemic, emerging markets like China got more investment. Now, China's share has dropped to just 3%. US policies might change if Trump wins in November or if interest rates drop. The IMF notes that US inflows reached 1.5% of GDP recently. But emerging markets need more capital to grow. High US debt and political issues could affect future investments. Nvidia's $10 Billion Boom Friday's trading could spark a $10 billion rush for Nvidia shares. If Nvidia closes strong, it could shift the Technology Select Sector SPDR Fund (XLK). Currently, Apple and Microsoft are the fund's top holdings, but Nvidia is close behind. A shift could bump Apple's weight down and boost Nvidia's, requiring over $10 billion in new shares. This big move is rare but not unheard of. Experts say fund managers are ready. They often see these shifts with sector changes, like Amazon moving categories. With tech stocks so large, even small changes can impact the whole market. Some suggest balancing risk by looking at equal-weighted tech funds. This could help spread out risk while still benefiting from AI trends. Toyota Bets Against Electric Cars Toyota is investing in better gas engines while Chinese electric cars speed ahead. Toyota’s new smaller engines can use different fuels, including hydrogen. The world's largest carmaker hopes this will attract buyers still hesitant about electric vehicles. Chinese carmakers like BYD are pushing hard into new markets with their electric cars. They’re also competing in traditional markets, like the US and Europe. Despite the electric push, Toyota thinks hybrids are still important and profitable. However, some experts worry Toyota might be missing the bigger shift to electric vehicles. While Toyota focuses on hybrids, Chinese companies are speeding up their electric car development. Bonds Boost Housing Market Signs of cooling inflation have led to a bond rally. This rally has pushed down the 10-year U.S. Treasury note yield, boosting stocks to record highs. Lower bond yields make borrowing cheaper and help the housing market. Despite the Fed's cautious stance on cutting rates, investors are optimistic. Many believe the Fed will cut rates twice this year. Recent data suggests inflation is easing, boosting investor confidence. Lower yields could have big effects on markets and the economy. Higher yields hurt stocks by increasing borrowing costs. The S&P 500 rose in June as bond yields dropped. Lower mortgage rates have also helped home sales. However, yield fluctuations could continue to affect the market. Quick Sizzles: - Pension Panic: Private-equity funds struggle, forcing pensions to sell at losses. California’s largest pension faces an eight-year crunch. Borrowing rises as funds lock up longer. - Wall Street on Edge: Market calm hides danger as S&P 500 climbs 14%. Narrow rallies and low trading volumes signal fragility. AI boom fuels gains, but risks loom. - Slim-Down Shopping Spree: Weight-loss drugs drive clothing sales. Slimmer Americans boost demand for stylish, body-hugging outfits. Retailers cut fabric costs with smaller sizes. - CEO Pay Skyrockets: U.S. CEO salaries soar, fueling inequality concerns. Elon Musk’s $56bn package raises eyebrows. Major investors back massive executive pay. - Defense Industry Frenzy: Record hiring spree in defense sector post-Cold War. Russia-Ukraine war spikes demand for skilled workers. Companies scramble to fill thousands of positions. That's a wrap for today's Market Sizzle! You're currently a free subscriber to [Josh Belanger](. For the full experience, [upgrade your subscription.]( [Upgrade to paid](   [Like]( [Comment]( [Restack](   © 2024 Josh Belanger 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()