Imagine the scene: just a year ago, the financial world was brimming with concern that a second term for Donald Trump would spell trouble for global markets. Investors feared his aggressive stance on tariffs and tax cuts would lead to a downturn outside the U.S., especially in regions like China, Europe, and Canada. But here’s where it gets intriguing—what a reversal we’ve seen since then. Now, global stocks are not just recovering; they’re setting new records, outperforming the U.S. market in a remarkable way.
In fact, the initial expectation that Trump’s policies would dampen international markets appears to have been turned on its head. Since his re-election, major indices across China, Europe, and Canada have each outpaced the S&P 500 when measured in dollar terms. This shift challenges the conventional wisdom that U.S. political turmoil or policy changes inevitably lead to global underperformance, and it raises questions about the true drivers of market success.
And this is the part most people miss—how quickly market narratives can flip, and how interconnected global economies really are. Does this mean we should rethink the assumptions about political risk and market performance? Or is this just an anomaly in the broader economic cycle? The debate is open, and your perspective might just add a new layer to this fascinating story.
