Rest of World’s Markets Broken By Trump’s America-First Plan

Published On Nov 13, 2024, 1:29 AM

Following Donald Trump's election victory, U.S. stocks have reached new highs while international markets are declining. The MSCI index of world equities, excluding the U.S., has hit a three-month low, and developing-market currencies have suffered substantial losses. Investors are worried about Trump’s protectionist trade policies, which threaten to increase tariffs, especially on China, leading to fears of a trade war. As a result, American assets have become more attractive to investors, resulting in increased allocation to U.S. equities. The ongoing market dynamics indicate a divergence between U.S. and non-U.S. assets with high likelihood of continued support for U.S. equities driven by expected government policy changes.