Trump's Policies Propel International Stock Markets
Since President Trump took office, the S&P 500 has experienced a decline of 6%, lagging behind major stock markets in Europe and China. This marks a shift from previous years when the S&P 500 consistently outperformed other global indexes.
In contrast, the German DAX index has climbed by 10%, and the STOXX Europe 600 has seen a rise of over 4%. These gains are partly due to increased military spending in Europe, following Trump's insistence that European nations bolster their own defenses.
Meanwhile, the Hang Seng Index in Hong Kong has surged by more than 20%, fueled by China's economic stimulus efforts. Mexico's IPC index has also risen by 5%, demonstrating resilience against Trump's tariff policies.
With the U.S. markets facing volatility due to uncertainties surrounding tariffs and federal budget cuts, financial advisors are increasingly guiding clients towards international investments.