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Matthias Knab, Opalesque: According to a market analysis by Quasar Elizundia, Expert Research Strategist at Pepperstone, U.S. equities are facing a significantly more challenging landscape than initially anticipated with the arrival of Donald Trump's new administration in 2025. Contrary to some initial expectations, which foresaw a favorable environment for stock market growth driven by lower regulations and a more lenient fiscal policy, markets are experiencing strong bearish pressures, with the Nasdaq 100 officially entering correction territory after falling more than 10% from its recent highs.
The root of this decline lies primarily in the deep uncertainty created by the lack of clarity and consistency in the government's trade policies. Although the stated goal is to revitalize domestic industry and manufacturing through protectionist tariffs, its implementation has been chaotic and contradictory, leaving investors paralyzed, unable to plan strategic investments due to constant changes in government decisions.
In fact, one could argue that trade uncertainty might have been less damaging if tariffs had been clearly introduced from the outset and then gradually removed through diplomatic negotiations, thus avoiding the current climate of indecision. Adding to this is the pressure stemming from government plans to significantly reduce the federal workforce, heightening fears of a prolonged economic stagnation, especially after President Trump recentl...................... To view our full article Click here
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