Trump's making America grate again

WE'VE been through 100 days of fireworks and fury since Donald Trump won the US presidential election last November, and pensions and stocks and shares ISAs are still reeling.

- By Harvey Jones

After trouncing every stock market for the past 15 years, the US now finds itself at the epicentre of an economic earthquake, triggered by Trump’s wrecking-ball approach to trade, tariffs and diplomacy.

Many ordinary British investors have done well out of US shares, particularly from tech mega-caps such as Amazon, Apple, Microsoft, Nvidia and Tesla. Even if they don’t hold these shares directly, their pensions and ISAs almost certainly do via investment funds.

But with all this volatility, many are starting to wonder whether it is time to abandon the American dream and look closer to home.

WORST

Trump’s second-term strategy has caused chaos. His so-called “Liberation Day” on April 2, when he unleashed import tariffs on the world, including the UK, wiped a staggering £5trillion off US stock values in just 48 hours. It was the worst two-day sell-off in Wall Street history.

Steve Dunne, a researcher at the University of Warwick, warned this is more than a short-term panic: “Trump has devastated economic confidence in the US. Decreased trust will prolong market volatility.”

It could have severe repercussions, he added. “It will weaken bond markets and America’s ability to service its colossal national debt.”