Investors unsettled: Trump's policies shock the German market!

Investors unsettled: Trump's policies shock the German market!

Uncertainty on the financial markets is growing, especially in Germany, due to President Donald Trump's ongoing economic policies. Over 76 percent of German investors are skeptical about the US stock market. A recent survey shows that 76.3 percent of those surveyed have lost their trust in this market. These concerns are not unfounded, with almost half of investors reporting a significant decline in confidence. Only 17 percent of investors remain optimistic and have a positive outlook on the future.

Given these uncertainties, around 40 percent of investors have shifted to safe asset classes such as gold or bonds. In addition, 15 percent of respondents sold US stocks, while 21.6 percent diversified their portfolios more broadly. Despite these developments, more than half of investors continue to hold on to their US values. In particular, US tech companies such as Apple, NVIDIA and Microsoft are still attractive to many investors. However, Trump's administration is affecting confidence in financial markets both in the US and internationally. These political conditions could ultimately also have an impact on global markets.

Economic challenges in the USA

The economic situation in the USA under President Trump also has an impact on investor confidence. Trump began his term in office with a significant shift in economic policy, which led to economic institutions having to adjust their forecasts. The stock market experienced remarkable fluctuations. How zdfheute.de reports, the US economy recovered after the coronavirus pandemic, but began to weaken towards the end of 2024. A setback was Trump's tariff policy, which resulted in a slowdown in economic growth.

The International Monetary Fund (IMF) has cut growth forecasts for 2025 from 2.7% to 1.9%. This adjustment highlights the ongoing challenges the U.S. economy must overcome. In addition, inflation, which had previously been reduced, rose again in June, which is likely to weigh on consumer sentiment, especially among Democratic and independent supporters.

Effects on the stock market

Stock markets have already seen a slump following the announcement of high tariffs on foreign products, leading to a loss of over 13% in the S&P index. However, the stock markets were able to recover after Trump announced the suspension of these tariffs. These developments show how sensitive the markets are to political decisions and how much investor confidence is under pressure.

Overall, the economic situation in the USA and the associated uncertainty remains a central issue for investors. It can be assumed that risk-taking investors will recognize opportunities in this uncertainty that can arise from long-term trends. The political landscape will continue to play a crucial role, particularly with regard to the stability of global markets.