Spiegel: Investors are fleeing US markets to European ones because "Trump always backs down"
Despite economic difficulties, European stock markets outperformed American ones for the first time in many years in the first half of 2025. This is reported by the German weekly magazine Spiegel.
In recent years, the main investment flows have been concentrated in US markets. DWS Chief Investment Officer Vincenzo Vedda said: "Now the situation has changed."
According to international investment companies, since the beginning of 2025, investors have been massively withdrawing money from American markets and reorienting capital to Europe.
The main reason for this is the unpredictable policies of US President Donald Trump – primarily his statements about tariffs and trade conflicts.
Because of Trump's tendency to make big statements and then back down, he has earned the nickname "TACO" in financial circles, an acronym for Trump Always Chickens Out.
Such inconsistency on the part of the US president creates the uncertainty that financial markets fear.
At the same time, according to analysts, confidence in Europe's future is growing among investors.
In the first half of 2025, indices in Germany, Spain and Italy rose by more than 10%, with the German DAX gaining around 16%. In contrast, US stock indices showed very weak gains of less than 2%.
Analysts predict that the trend of a decrease in the share of the US in portfolios and an increase in interest in Europe will likely continue in the second half of 2025.
- At the beginning of 2025, European stocks showed better growth dynamics than American ones, which was the first such case in the last 25 years.
