US President Donald Trump’s economic policies have created chaos in the market, leading investors to flee to Europe. During his first term, the S&P 500 rose nearly 70%, but since mid-February, sentiment has turned sour, and it’s been downhill ever since.
Despite Trump’s promise of a pro-business agenda, markets are now facing uncertainty due to tariffs, deregulation, and economic chaos. The US economy is cooling fast, with forecasts predicting a contraction in GDP. Even Goldman Sachs, one of Wall Street’s most bullish firms, has slashed its growth forecast for the year.
In contrast, European countries such as Germany and France are stepping up, promising significant investments in defense and infrastructure. The European Commission plans to raise €150 billion in common debt to boost defense spending, a move seen as a response to Trump’s actions towards Russia.
Trump’s economic policies have created uncertainty, and investors are now turning to Europe for stability. The US president’s failure to provide clear direction on trade and tariffs has led to market volatility, and it remains to be seen whether he can regain investor confidence.
Source: https://www.telegraph.co.uk/business/2025/03/11/money-is-fleeing-us-to-europe-lets-hope-its-warranted