Donald Trump’s customs break has given fuel to the stock exchanges in May
After a tough spring, May became a strong stock market internationally. The Stockholm Stock Exchange closed the month at Plus, but the rise of just under 2 percent for the broad index slipped after both Europe and the US. For example, both Wall Streets S&P 500 and the Frankfurt Stock Exchange’s dax rose over 6 percent in May.
The upturn has been given a new abbreviation to find itself into the stock exchange lexicon. Taco, or « Trump Always Chickens Out » (Trump always gets out), spread as a way to summarize the US president’s trading strategy where he paused a large part of spring customs after the financial markets kicked back.
It provides increased risk will, which is also visible among Swedish small savers. Fresh figures from the networks Avanza and Nordnet show that they sold precious metal funds in May, a sign that they do not believe that the gold price will continue to be driven by the high uncertainty.
At the same time, there are several Shares that have taken bangs during the last period of quarterly reports high on the buying lists, as well as equity funds that invest in both Swedish assets and global shares.
– It shows that there is some kind of risk appetite after all, says Frida Bratt.
The fact that the savers have sold by holdings in several Swedish major banks, which are considered less sensitive to customs, is also a sign of optimism according to Avanza economist Philip Scholtzé. However, he does not think that it is possible to draw too large conclusions from the last month’s trade.
– It is usually that you take home profits in what has gone strong and buy what has fallen.
However, similar trends are visible internationally. According to the US Bank Bank of America, US investors’ positions in defensive sectors such as health care and basic goods have now reached the lowest level of a quarter of a century.
The pattern is well known from In recent years, when declines in the stock market have attracted investors to increase their exposures – or to buy the dip – as is often expressed in the stock exchange context. It is better than selling when the stock exchange falls according to Frida Bratt.
– It may also be to continue to save their usual global funds. It is not always the case that what falls a lot is bought as a discount.
At least Avanza’s savers are seen some signs that interest in US shares is increasing again. Both the semiconductor giant Nvidia and the investment company Berkshire Hathaway are included on the list of the best -selling shares. Nordnet’s Frida Bratt says the savers have been attracted back to Nvidia, whose share price has risen by almost 20 percent in a month.
But there are risks by putting too much hope that Donald Trump will continue to back off the customs threat, according to Philip Scholtzé.
– We don’t actually know how this will be. We knew even before the turn of the year that Trump wanted to keep up with these customs and yet he shocked everyone. Just because he shows the cards now in how he handles this, we actually don’t know what happens next, he says.
Regardless of how the trade conflict is developing in the coming months, there are conditions for a stormy stock exchange.
– We do not know what comes out of this customs turbulence, we have the American debt ceiling and all that turmoil. So there are plenty of events that can affect the stock exchange. You should be prepared, but on the other hand you may not act on just that, says Frida Bratt.
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