After approaching nearly 10% return on my foreign currencies, I decided to sell them today. The inflation data is looking ominous and it may lead to the Federal Reserve hiking interest rates at a time that everyone thinks interest rates are primed to go down.
If inflation does spike and the Fed raises rates, it will cause the US dollar to rally. The Swiss National Bank has also been planning on lowering rates to zero. The tariff trade war isn’t helping anything either and that may lead to more inflation in the short term but a deep recession in the long term.
I’m going to hold on to cash and wait for better clearance either way. I loaded up on 40k worth of T-bills this week as well to earn some interest. I also continue to load up on municipal bonds in my cash taxable accounts for tax free income.
Reading some of the reddit forums, small businesses are getting crushed by the tariffs on China goods so things are really starting to fall apart.
Of course, anything can change on a dime and tariffs could be gone tomorrow but it makes sense why Warren Buffett is sitting on a huge pile of cash.
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What are your investment money moves this week? Let me know in the comments below.