With uncertainties about the US economy growing and some nations upset by President Trump's tariffs, some investors are looking to put their money in places outside of the United States. Yahoo Finance Senior Reporter Alexandra Canal takes a closer look at what financial experts have been saying about a potential "sell America" trade.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
It has been a volatile week in the markets with them whipsawing from President Trump's tariffs. Yahoo finances Alexander canal joining us now with our weekly investor playbook. Hey, Allie.
Yeah, what a week guys. And it hasn't just been equities. We've seen volatile swings and safe haven assets as well just aggressively selling off. If you take a look at the 30 year yield, it logged its biggest week since 1982. The 10 year yield, biggest week since 2001. Meanwhile, we've seen the US dollar sharply weaken against foreign currencies. This is very unusual. Typically when we're in this period where there's concerns over stagflation, concerns over a recession, the potential impact that that will have on the US economy, we see investors flock to safe haven assets, but that hasn't happened. So what's been going on? Potentially, we have a loss of confidence when it comes to the entire US financial marketplace really. In addition to that, the potential impact of foreign buyers boycotting US debt, if you think about treasuries, uh, China, Japan, they're a big buyer of our debt. So we asked Wall Street experts these questions, what they make of this weird trading action that we've seen throughout the week. Here's more of what they had to say.
All of these really point to a coordinated move away from US assets. And I think that that is a trend that is likely to persist here in the short to medium term.
What people are concerned about is that maybe we're seeing a capital strike against the US where large pools of capital are selling US assets and taking their money home.
Yeah, I think it's a 50/50 shot at this point in terms of recession hitting this year. It's a shame because it looked like the Federal Reserve essentially had this soft landing in the bag in this huge tariff disruption, which is not over, um, has really thrown a monkey wrench into the soft landing.
And Michael Darda, he went on to say that a recession is more concerning to him than an increase of inflation, which experts have told us will likely happen now that the US has escalated that trade war with China, now tariffs there of 145%. So just, you know, weird trading action comboed with this back and forth trade policy, all those wonky headlines really sending investors for a tizzy this past week.
