The economic and trade policies of the Trump Administration have started to change the image that investors have of investing in U.S. markets. According to several analysts consulted by the Financial Times, the tariff war and the unpredictability of the president’s policies are taking their toll on the considerations of many investors, who are probing other markets as a destination for their business initiatives.
Seth Bernstein, chief executive of Alliance Bernstein, a global firm with over $780 billion in assets under management (AUM), stated that Trump’s big, beautiful bill and the implications it has for the U.S. debt have made him rethink the company’s business strategy.
The deficit has been out there as an issue; it’s just getting worse. I think it is untenable for the United States to continue borrowing at the pace it’s borrowing.
Bernstein added that this, combined with Trump’s trade maneuvers, is prompting investors to diversify their U.S. exposure. “It should cause people to pause and consider: how much do you want concentrated in one market?” he stressed.
Joana Rocha Scaff, head of European private equity at New York-based Neuberger Berman, highlighted that investors are taking more interest in Europe due to several factors, not limited to the current tariff turmoil.
She stressed:
It’s more than tariffs. The macro backdrop in Europe has not been more benign than the US but it’s more stable.
While the current approach of the U.S. government with other countries like China and Japan to close trade agreements might appease some of these fears, there is no certainty that these will succeed, at least in the short term.
However, most analysts confirm that the U.S. is still one of the key destinations for global investment and will remain so for the foreseeable future.
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