New decisions by Donald Trump may raise concerns in the short term, but they are expected to benefit the U.S. in the medium and long terms. Europe is the most affected region by these changes, after China.
The price-to-earnings ratio in the U.S. has been extremely high for the past five years, and a correction is necessary. Signs of an economic slowdown and stagflation have raised concerns among investors, prompting them to reallocate their assets from growth stocks to value stocks in the U.S. and Europe, as a defensive strategy.
Europe has been struggling since 2010, while the U.S. has continued to grow, especially in technology. There is also a lack of cohesion among European countries, compared to the high level of cohesion among U.S. states.
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