The collapse of the customs tariff for stock and bond markets in the United States has been collapsed. But the stocks and the treasury are not the only assets on the American Fritz-Dollar also decrease, with analysts warning against the global “installation” in response to the Trump administration’s feverish foreign policy resolutions.

“We are witnessing a simultaneous collapse in the price of all American assets, including stocks, and the dollar against the alternative reserve [foreign exchange]George Saravilus, the international head of foreign exchange research at German bankNote this week. “We enter Unchart[ed] Land in the global financial system. “

Even with the rise in market revenues and bonds, the dollar fell to a three -year minimum level this week. In a more typical environment, the markets will be “storing” dollars as a safe haven from other noise, says Saravilus, and will enhance the dollar. But what Trump has launched on global markets is far from model. Now, other countries are losing their confidence in the United States and actively selling American assets, and may have raised the state of the global reserves of the dollar.

This is a problem, where the exceptional of the US dollar is supported by other countries: Foreigners invest approximately $ 2 trillion In the United States every year. Foreign investors, both individuals and governments, Owning 30 % of the American debt. Seeing them heading to the exits is a cause of great anxiety, not at least because it may lead to an increase in borrowing costs for the United States at a time when the national debt is enlarged.

Analysts will be less concerned about recent fluctuations if the United States government is committed to maintaining a dollar reserve status. But Stephen Miran, Chairman of the Economic House of Economic House “Costly”, “ He claimed that it makes us employment and products is not competitive.

So where does that investors leave? Some are looking for reassurance in Assets like goldGary Schlosburg, the global strategic expert in Wales Vargo Investment Institute.

But it was not time to give up all the belief in the US dollar, he says – the collapse of the sale is not imminent. It is still possible to reverse the current erosion in its strength. Because although the major damage has occurred during the past few months, the American exceptional columns are still standing: the American market is still deeper, more liquid, more sophisticated and more efficient than anything else. Although some have put the euro as a possible alternative, Europe is more fragmented than the United States, and it faces the dangers of disintegration.

“There is definitely withdrawal from the United States,” said Shalosburg. But “the dollar will remain axis. There are very few alternatives there.”

Global confidence is shaken in the United States

However, Chalosburg and other analysts noted that the current market environment is very different from the previous shocks. Take 2011 credit reduction Treasury debts. At that time, investors looked at it, and still consider the dollar a stable safe haven, preventing the market. During the 2008 financial crisis, governments met to correct the ship.

But the Trump administration’s tariff policies and manufacturing intention in the United States from other countries are a different monster, as decades of agreed bases are filled and threatened the role of the United States as a reality of reality in the world. It is possible that the repercussions are long.

“You are talking about removing the United States from the global economy,” says Schlosburg. “I do not mean to suggest that we are about to collapse in the trade system and payment that belongs to World War II, but it creates uncertainty.”

Creating more uncertainty is how Trump’s liquid policies were. Within just a few weeks, he implemented the customs tariff, changed it several times, and some of them now freezed, although the bitch is 10 % tariffs on most countries and 145 % tariffs in China are currently present. Because all of this was done by executive order – and not being written by Congress in the law, Although the customs tariff is in its competence– It can be easily canceled or replaced, as Trump has already done itself. All this is the erosion of confidence in the United States, which it will be difficult to retract even if all policies are reflected. Analysts say the big winners of all this are the euro and the yen.

Shalosburg says that homogeneous investors should speak through their feelings with a financial advisor, and read about how to display the market environment. But now at least, The basics remain: Diversify your property to include both American and international exposure, Consider gold as a safe havenAnd Think about increasing your money Customize time at the present time. Do not get “above your crawling” in an attempt to find alternatives in a fast -changing environment.

“It is optimistic to say, this must also pass,” Shalosburg says. “It is not a pyramid tomorrow,” says Schlosburg. “I mean, this may be reflected on Monday.”

This story was originally shown on Fortune.com

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2025-04-11 17:23:00