On April 22, a research report by China International Capital Corporation (CICC) pointed out that after the United States announced the imposition of tariffs, there was a rare situation of “three kills” in stocks, bonds, and foreign exchange. In addition to trading factors, fundamentally speaking, the market is pricing “stagflation in the United States” and a “not so bad eurozone”. From January 1971 to the present, there have only been six months in which US stocks, bonds, and remittances have experienced significant declines simultaneously. If US stocks, bonds, and the US dollar do not change significantly in April, April 2025 will be the seventh month since 1971 in which US stocks, bonds, and remittances have all experienced significant declines in a single month. Generally speaking, a combination of asset changes that investors are more adaptable to is the decline in US stocks, the rise in US bonds, and the rise in the US dollar. But if the United States is facing the risk of “stagflation” and other economies can rely on “non American” forces to support fundamentals, then there may be a situation of three kills in US stocks, bonds, and foreign exchange rates.
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