Trump: Globalists are behind the U.S. stock market sell-off.

Trump: Globalists are behind the U.S. stock market sell-off.

In a recent critique, President Trump attributed the U.S. stock market sell-off to globalists. This assertion holds some merit, given the impressive performance of international equities since his inauguration [1].

Since January 20, 2017, the S&P 500 has experienced a modest 1% growth, while the MSCI China ETF has surged by approximately 17% [1]. Similarly, the iShares Eurozone ETF has gained around 6% during the same period [1]. The Dow Jones Industrial Average, a key U.S. benchmark, has barely managed to maintain a positive return over the past month [1].

The leaders of U.S. tech companies have also faced stiff competition from their Chinese counterparts. For instance, the Invesco QQQ ETF, which tracks the NASDAQ-100 Index, has grown by about 2.5% since the inauguration, while the KraneShares CSI China Internet ETF has experienced a remarkable 20% growth [1].

Emerging markets stocks outside of China have also outperformed their U.S. counterparts. Although they lag behind large-cap stocks in Europe and China, they are starting to gain attention. The iShares MSCI Emerging Markets ETF, for instance, has grown by close to 6% since the inauguration [1].

Perth Tolle, founder of Life + Liberty Indexes, which includes the benchmark for the Freedom 100 Emerging Market ETF, has also experienced similar growth. The Freedom 100 Emerging Market Index, which is heavily weighted towards Taiwan, Chile, South Korea, Poland, and Brazil, has grown by about 6% since the inauguration [1].

Although emerging markets can be volatile and subject to uncertain regulatory regimes, each stock in the ETF is assigned a grade based on the investability of its respective market. While India, a significant focus for emerging market investors, is low in the Freedom 100 due to high tariffs and concerns about personal freedom, Tolle remains optimistic about potential gains [1].

In conclusion, President Trump's critique of globalists' influence on the U.S. stock market sell-off carries some weight. International equities have outperformed their U.S. counterparts since his inauguration, with emerging markets stocks showing particular promise.