US markets are no longer safe for investment — Carmignac

The US markets stopped being a secure destination for foreign investors due to risks associated with President Donald Trump’s bill on tax and spending, believes chief economist at French asset manager Carmignac, Raphael Gallardo. 

He says Section 899 of the bill would raise tax rates for individuals and companies from countries whose tax policies are considered “discriminatory” by the US. The Wall Street agrees that this would further undermine confidence in American assets, already battered by Trump's trade policies and the country’s deteriorating fiscal performance.

Bloomberg notes that Carmignac is shifting some investment from the US to Europe. Germany's fiscal reforms have significantly improved the eurozone's economic growth outlook. Chancellor Friedrich Merz has taken a series of measures to increase infrastructure spending and revitalize the country's GDP expansion through corporate tax breaks. 

EU assets also benefited from concerns over US tariffs. At the end of May, eight out of ten best-performing stock indices worldwide were European, Bloomberg says.