Donald Trump's inauguration was barely two weeks ago, but the US President had already stolen the show, saturating the media over the past two months. On both social and economic issues, Donald Trump was everywhere and the markets, although quick to anticipate, sometimes struggled to keep up. The overwhelming predominance of the United States is nothing new, and a breakdown of the performance of the world markets last year leaves us in no doubt about it: almost all of the 2024 performance was due to US stocks! Even if we summed up all the European countries’ contributions together into a single line, it would barely move the needle. The US, what else? There is no doubt that Trump and his no.1 buddy Elon Musk will continue to occupy the media landscape, but as far as financial markets are concerned, markets fond of renewed 'narratives', it looks to us like the 'Trump trades' are losing their momentum. The new story is perhaps closer to home. According to the Blackrock CEO Larry Fink, speaking at the Davos forum, "There is too much pessimism about Europe". This 'narrative' is gaining traction and should be a source of opportunity over the coming months, as the temporary bout of risk aversion triggered by trade tensions may also prove. We are discussing these topics in our newsletter.
EN
