Raphael Gallardo, chief economist of French asset manager Carmugnac. They warned that the United States is no longer a safe goal for foreign investors due to the risks of the tax and expenditure of President Donald Trump, as Bloomberg states.
Gallardo is the latest market commentator who speaks of deep concern about section 899 of the bill, which would increase tax rates for individuals and companies from countries whose US tax policies consider it “discriminatory”. Some dubbed the “Revenge Tax” measures.
Gallardov views of American markets
During the briefing of the view of the second half of the year, Gallardo said: “The United States is no longer a safe nation for investment.” Carmignac, who had about $ 39 billion at the end of 2024, called his presentation “” from America first “after the global financial anarchy”.
Gallardo believes that Trump’s unpredictable trade decisions, along with concern about his foreign policy and the rule of law, are coming to traditional US allies to reduce their dependence and links to the world’s largest economy. “Why Derisk? Because the United States has become an unreliable military ally, so it is necessary to provide supplier chains to find new markets,” as Bloomberg says.
Wall Street Consensus
According to Bloomberg data, the consensus of Wall Street is that the tax provision would further reduce investors’ confidence in US asset, which already shaken by Trump’s business policy and deteriorating fiscal accounts of America.
According to the Chief Investment Director of Allianz, Ludovic Subrana could cause a 5 % dollar drop and 10 % of the sale across shares.
What is the investment strategy of Carmugnac now?
Carmignac diversifies the allocation of assets from the US to Europe, where German historical fiscal reforms increased economic growth, Bloomberg said.
German Chancellor Friedrich Merz has taken a number of measures to add the weight of the country’s military capacity, speed up infrastructure expenses and revive the economy through comprehensive tax reliefs of legal entities. “Trump managed to achieve what no one had ever had before, and it was to make the Germans start to spend,” Gallardo said.
Bloomberg said European shares have appeared this year as a clear winner around the world, because concerns about Trump’s business policies support investors to reduce the possession of the US assets. At the end of May, eight out of the 10 10 European indexs in the world were European.
Carmigher
Carmignac processes a number of funds across capital, fixed income, diversified and alternative classes of assets with various geographical focus and target results.
Last year it was among the assets of assets who predicted rally in global events and refused to talk about bubbles on the stock markets, according to Bloomberg
(Tagstotranslate) US Market
