Global markets have been significantly impacted by President Donald Trump’s aggressive trade agenda. Despite his promise of a ‘new golden age of America,’ the appeal of US investment is losing its shine. Trump’s tariffs have marked the end of an era of US exceptionalism, according to analysts, and have affected the perception of US markets as the premier place to invest. His trade war has disrupted economic growth forecasts and led to reduced guidance from CEOs and Wall Street banks. A survey by Bank of America revealed a record number of global investors planning to decrease their holdings in US stocks since data collection began in 2001. Seventy-three percent believe US exceptionalism has peaked. Arun Sai of Pictet Asset Management noted that even if tensions de-escalate, the damage is done. Global investors are now reconsidering their allocation to US assets due to concerns about economic growth. The US stock market, once the gold standard, has underperformed this year. Factors such as DeepSeek’s AI model, shifts in US foreign policy, and erratic tariff communication have pushed investors toward other markets. Analysts suggest that Europe’s embrace of fiscal stimulus and China’s technological advancements provide alternatives for international investors. Confidence in Trump’s economic policies has waned, as shown by higher Treasury yields and a weaker dollar. While the US market remains viable long-term, investors are diversifying portfolios amid uncertainty. — new from CNN
