Early this morning, I saw Ruxing, the world's largest jeans leader, in financial crisis. The National Development Fund stepped on the thunder. The National Development Council had invested 1.488 billion five years ago and subscribed for 18.6 yuan per share. Ruxing (4414) is now increasing shares. A major financial crisis was rumored. Ruxing held a press conference on the 25th and said that the company has faced major financial difficulties without funds. Will taxpayers' money become wallpaper because of this? The stock exchange announced that Ruxing will enter the fully-delivered shares from July 27.

The strong dollar is bringing pain to the global market!

Hot inflation, interest rate hikes and recession fears have pushed the dollar higher. From the cost of traveling abroad, the benefits of multinational corporations, to the economic prospects of developing countries... a dollar storm is coming.

Who will the high dollar hurt? The strong appreciation of the US dollar may lead the world to a "doom cycle" (excerpted from Business Week / Author: compiled by Qiu Yunzhen)

Bad trade! The global economy may be caught in a 'doom cycle'

Jon Turek, founder of policy research firm JST Advisors, told Bloomberg that the dollar’s current strength puts the world at risk of a “doom loop”.

The so-called doom cycle refers to a higher dollar, which hinders global manufacturing, which in turn depresses commodity prices, which in turn hurts global trade and raises fears of a global recession—and then drives the dollar higher, thus worsening global trade and production again. out.

That’s because most cross-border trade is still denominated in dollars, a defining variable in manufacturing dynamics. And looking back on history, a stronger dollar has often dealt a broad blow to the world economy.

The U.S. dollar also has a special place in global markets. In turbulent times, investors tend to flock to buy assets that are denominated in them as safer and more stable, driving the dollar higher. This is not just one of the reasons why the U.S. dollar soared when the market crashed at the start of the pandemic in March 2020, but also one of the reasons why the currency is strengthening now.

What's really scary about this cycle of doom is that there are no circuit breakers in sight to stop it anytime soon.

Emerging markets are facing the biggest test. Lebanon, Sri Lanka, Russia and other countries have defaulted on their debts, and more than a dozen countries are facing the risk of debt collapse. Next, with the Federal Reserve raising interest rates with no end in sight in a short period of time, I am afraid that more Sri Lanka will appear.

Investing must follow the trend. In chaotic and unstable times, seeking good fortune and avoiding evil is a necessary method. Many customers will continue to embrace the product after buying the product. It must be checked frequently. Many issues are changing with the pulse of the world. When the trend is not right, these stocks may become a bubble. Risk and return rate are positively correlated. When jeans are no longer favored, they will be overwhelmed by the times without transformation. Hexing has changed from a leader to a fully-delivered stock, which has to make people sigh.