America is in freefall, and foreign investors know it.

4 hours ago 10

'Global markets: Investors continue to flee the U.S. as analysts predict tariff-induced recession,

Would you invest your money in Yemen? This is how foreign investors feel about investing in Trump's turbulent America,

America used to be a known, known; now it is a known, unknown and not to be trusted with anything.

The Trump administration is rife with well documented lies, misinformation, and chicanery, and with the indecision of a diabetic in a bake shop.

There are unreasonable tariffs being applied across the board, but done so haphazardly They are initiated, then withdrawn, reapplied. modified, withdrawn again in a piecemeal manner, reduced in some instances but increased in others in a whirlwind of confusion and ambivalence with no guarantee of who will be charged what, or when will it happen.

Our closest allies, some of those who have stuck by us since the American Revolution are abandoning us, and rightfully so. The only certainty of Dealing with the United State is uncertainty -- once the dog bites you, you can never trust him again.

The reason is America has turned against the world in her self-serving way, and no matter what future administration replaces this bumbling one, it could happen again. To return to the mad dog analogy; 'Once bitten, twice shy'.

No, wise investors seek out stability, not predictable unpredictability,

America is becoming a pariah state and will face its uncertain fate alone.

See this report:

Investors continued to shy away from U.S. assets as they digested the ongoing potential fallout from President Trump’s tariff regime, and China’s response to it, over the Easter weekend. The S&P 500 is down 10% year to date. Futures in the S&P were down more than 1% this morning. Stock trading was thin over the Easter weekend as many global markets were closed for Good Friday and Easter Monday. But there was one obvious indicator of sentiment regarding the U.S. economy: the weakening dollar.

This year, the dollar has lost nearly 10% of its value against the DXY, an index of commonly traded foreign currencies, as investors pull away from U.S. economic uncertainty. The dollar has lost 9% of its value versus the British pound and 8% against the euro, year to date. A big part of the dollar’s losses comes from the fear that the Trump administration will take political control of the Fed. “U.S. National Economic Council director [Kevin] Hassett said U.S. President Trump was investigating whether they could fire Federal Reserve Chair [Jerome] Powell. Investors seem less than happy with the idea of a politicized Fed—the U.S. dollar and long-dated government bonds have weakened,” wrote UBS’s Paul Donovan in a note to clients this morning.

Investors pulled their money out of U.S. assets after China threatened to retaliate against countries that made trade deals with the U.S. that hurt Chinese interests, deepening worries that the Trump administration’s tariffs will unleash a global trade war. "China is determined and capable of safeguarding its own rights and interests,” China’s Commerce Ministry said in a statement. His counterpart at Oxford Economics, John Canavan, was similarly negative. In a recent note to clients, he wrote: “While the easing of tariff threats has helped to soothe markets for the moment, the level of tariffs on the rest of the world remains historically high, and risks to inflation and economic growth remain high.”

Big Tech’s “Magnificent Seven”—Apple, Microsoft, Nvidia, Amazon, Tesla, Alphabet, and Meta—kick off earnings season this week, starting with Tesla on Tuesday. The second Trump administration has not been kind to their stock values so far: In the period between President Trump’s inauguration and April 20, their combined market capitalization dropped by $3.8 trillion, or 22%, according to an AP analysis.

This story was originally featured on Fortune.com

Story by Jim Edwards, Ian Mount •

https://fortune.com/2025/04/21/global-markets-stocks-recession/

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