Teddy's Big Adventure Down Under: Australia's Bond Market Steals America's Thunder!

America's Gone Bonkers!

Right so the grown ups in suits are saying some very important things about money. Apparently the 'dedollarization' is happening. Sounds like something you'd need a very strong vacuum cleaner for! Remember that time I tried to fix my telly with a firecracker? Well it seems some big investors are doing the financial equivalent because under the rule of President Trump investors are choosing to invest in other markets.

G'Day Aussie Bonds Goodbye Greenbacks?

Now Bank of America (not to be confused with my piggy bank which mostly holds lint and the occasional stray button) reckons Australia is the place to be. Apparently their bond market is all the rage. It's like when I discovered that a paper bag on my head was a fashionable hat! Everyone wanted one. It's like when Teddy gets all the attention at a picnic. But I can't go off topic because the Bank of America also said that Trump's policies caused investors to sell their shares out of America and invest elsewhere. Which means the US dollar is no longer safe.

The Dollar's Doing a Nosedive!

The U.S. dollar is down 9%. That's nearly as much as the time I tried to cut my hair with hedge trimmers! Strategists at Bank of America are chattering on about 'significant price moves' for Australian debt. It's all very technical like trying to understand the instructions for a flat pack wardrobe. Even a tiny bit of money moving out of America could cause big waves in Australia. It's like that time I accidentally flooded Mrs. Wicket's flat with a garden hose or perhaps when I shrunk my favorite wool sweater when trying to wash it.

Underweight Dollars and Overstuffed Kangaroos!

Turns out the important money people are the most underweight on the U.S. dollar than ever before. That means they're not too keen on it. This is serious like when Mrs. Wicket threatens to confiscate Teddy! Apparently even more money is flowing into the Australian dollar. That's a lot of shrimp on the barbie!

Aussie Bonds Get the Bean Treatment!

Those Bank of America blokes (Oliver Adarsh and Janice – sounds like a circus act!) are saying a small shift could have a 'major impact' on Australia's bond prices. They went all the way to America and Canada (which is way further than my trip to the seaside) and found everyone talking about this 'dedollarization' thing. It's a theme darling a theme! Think of it like when I accidentally set the Christmas turkey on fire that was a theme too. A smoky inedible theme.

The Future? More Aussies Than Americans!

So what does all this mean? Well demand for Australian bonds is going up and apparently they're expecting it to go even higher in a few years. They reckon Australian bonds will be doing much better than American ones. I hope someone remembers to send me a postcard from Down Under! This could have a 'major impact' on market pricing according to these experts. It might even be more complicated than trying to parallel park my Mini!