Had a random thought last night, got curious on how the U.S. Profits from political instability in France and the UK
P olitical instability in France and the United Kingdom has created economic and strategic opportunities for the United States. From capital flight to increased reliance on U.S. financial and military sectors, the ripple effects of European turmoil have positioned the U.S. as a major beneficiary. Capital Flight to U.S. Markets UK Equity Fund Outflows: Since the Brexit referendum in June 2016, investors have withdrawn nearly £100 billion from UK equity funds. Much of this capital has flowed into the U.S. stock market and Treasury bonds, which are seen as safer alternatives during political uncertainty. Impact on U.S. Markets: The U.S. dollar strengthens as it becomes a safe-haven currency. Increased demand for U.S. Treasury bonds stabilizes the American economy. Wall Street benefits from an influx of European capital seeking security. Signage is seen outside the Blackstone Group headquarters in New York City, U.S., January 18, 2023. REUTERS/Jeenah Moon/File Photo U.S. Asset Ma...
