Tariff-fogged markets leave investors flying blind
Anxieties over whether a 90-day White House-China tariff truce will hold, plus US budget gaps and whipsawing currencies have made investors extremely cautious about where to put their money
Global investors admit to flying blind in markets roiled by erratic US trade rhetoric and chaotic economic forecasting, stressing that placing long-term bets was harder now than at any time since the 2020 COVID-19 crisis.
Anxieties over whether a 90-day White House-China tariff truce will hold, plus US budget gaps and whipsawing currencies have made investors extremely cautious about where to put their money.
Markets have been on a rollercoaster ride for weeks, with world stocks rallying 20% (.MIWD00000PU), opens new tab from more than one-year lows hit after U.S. President Donald Trump's April 2 tariff bombshell, after slumping 15% in three sessions.
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The turbulence continued on Thursday with a sudden selloff in global government debt, the latest event to spook long-term investors out of markets that they fear have lost the anchoring force of consensus forecasts.
"There is no macroeconomic visibility," said Francesco Sandrini, Italy CIO at Europe's biggest asset manager Amundi.
He said he was following short-term speculative market trends instead of taking a stance on the global outlook.
