When it comes to investing, the impact of global events on the stock market cannot be underestimated. Recent political developments, such as Donald Trump’s victory, have had a significant effect on international equities. In particular, Trump’s proposed policies around taxing imports have caused concern among investors.
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While major U.S. indexes have been hitting record highs, U.S.-listed funds tracking global stocks have experienced pullbacks. Exchange-traded funds from iShares tracking countries like South Korea, Mexico, Hong Kong, Japan, Taiwan, and Chile have all fallen in Wednesday trading. This can be attributed to the uncertainty surrounding Trump’s proposed tariff policies, which could have significant implications for international markets.
Yung-Yu Ma, chief investment officer at BMO Wealth Management, emphasizes the importance of understanding the potential impact of these policies on global stocks. While the investing landscape in the U.S. may remain favorable, international markets are more exposed to tariff policy uncertainty. This uncertainty could limit the near-term upside in global stocks.
At the same time, there is a clear divergence between U.S. and international markets as investors digest America’s election results. While the Dow Jones Industrial Average saw its best day in nearly two years, European and Asian markets struggled. The iShares Core MSCI Europe ETF slid around 2.5%, while the iShares MSCI China ETF shed more than 2%.
However, there are also bright spots among international-focused funds. The Global X MSCI Argentina ETF climbed more than 2% and touched a new 52-week high. This highlights the importance of diversifying your investment portfolio to capture potential opportunities in different regions.
At Extreme Investor Network, we keep a close eye on market trends and provide valuable insights to help you make informed investment decisions. Our goal is to empower you to take control of your financial future and achieve your investing goals. Stay tuned for more updates and analysis on the ever-evolving world of investing.
Sources:
– CNBC’s Sarah Min, Jesse Pound, and Hakyung Kim contributed to this report.