The economic measures taken by the US administration, such as imposing tariffs on imports, will directly impact inflation in the United States. This is expected to drive up prices, reduce consumer purchasing power, and ultimately affect saving and spending levels.
Economic growth may slow down as business confidence declines, leading companies to delay expansion and investment plans, which could negatively impact financial markets.
In response to these challenges, investors are adopting strategies such as investing in long-term bonds to hedge against economic slowdowns or balancing risk exposure by combining short and long-term bonds.
European markets may be less affected due to lower valuation multiples compared to the US market. Additionally, a weaker euro could enhance the competitiveness of European exports.
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