History has also shown us that when a market outperforms the general market by 60-70%, it normally reverts back to the norm. So is this what we have just seen, or if we take a step back on a longer timeframe, is more to come?
UK, Europe, Asia, even China to a point have lagged the USA. Is it their time to catch up, and is now the time to rebalance out of a heavily tariffed market?
Trumps tariffs are going to make it more expensive to live in the USA. Companies are going to make less from their home market, and perhaps this is the kick up the backside investors and consumers in other countries needed?
I already sold about 80% of my small US exposure around 24 Feb. If Trump persists with tariffs, we are going to see lots of retaliatory tariffs as well. It puts US at the centre of a tariff trade war which can’t be good for the US. So I think there is potentially more to come. But it depends what Trump does next.
I’m seriously thinking of getting rid of the rest of my US exposure with a view to buying some back later when I think it’s dropped enough or the US changes direction.
But what do I know? I’ve thought US stocks have been overvalued for years, and yet they’ve still gone up a lot.
I’d be interested to hear the bull case for the US in the current circumstances.
No one can tell the future, I’ve been mulling over whether to do my monthly top up of my USA pie or divert the funds I’d normally put in, into my Canadian and UK pies.
If Canada signs the trade deals with the EU, at least it’s an improvement.
The UK is forging closer ties with the EU again, which could lead to a jump.
It’s too late for me to sell my USA stocks as they are all down and as Warren Buffet says. “Never lose money.”
At the end of the day, just don’t risk what you can’t afford to lose.
One other thing, the orange **ntface changes his mind like the wind, so who knows what the future holds.
One hot tip, invest in whichever company provides bed sheets to the white house, as I’m sure the used ones are ruined with orange stains every night.
