A new world order emerged in the three weeks since President Trump on April 2 announced the “Liberation Day” and deployed the American prices. From an investment point of view, it is sure to say that this has been a shock heard in the world, and the markets are furiously note a new set of risk factors for a radically different perspective of economic activity, financial assets, commercial policy and hypotheses on shelters.
Given the upheaval that has arrived, it seems reasonable to start following the main world markets from a start date of April 2. The previous world order suddenly resembles ancient history and is undoubtedly unimportant for what awaits us. The graph below summarizes the winners and the losers to date since the start of the Liberation Day, based on an ETF set until the fence of yesterday (April 21).
Gold () is the big winner of what could be called the great financial reset. Precious metal has increased by 9.7% so far. State obligations on the ex-US developed markets () are a solid winner of second place with an increase of 6.0%, followed by obligations issued by governments on emerging markets () with an advance of 2.1%. Bitcoin () is in fourth place with a modest advance of 0.6%. Cash (), based on American treasury bills with deadlines of one or less, increased by 0.2%.
The losers of the great financial reset are led by American shares (), which crushed 9.1%. The other large prints are in American real estate investment (), the dollar () and the actions of emerging markets (EMLC).
Deciding how long the great financial reset will last, or if it is a permanent functionality from now on, this is the crucial question. For the moment, the debate is raging.
What is clear is that the old script is torn concerning the hypotheses on the functioning of the markets. Adding to the confusion: investors have at prices in several spectacular changes taking place simultaneously. The two elephants of the room: the prices, of course, as well as the burning questions on the independence of the federal reserve following the recent attacks by President Trump against the president of the Fed Powell.
There are also crucial macro questions on …
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