There is a significant gap between US stocks and European equities. Financial expert Jim Cramer shares his observations on the current situation.
Current Market Situation
Jim Cramer highlights that the DAX in Germany is up 19% so far this year, while the S&P 500 has fallen by more than 1%. He emphasizes that investors are increasingly turning to European stocks.
Trump’s Trade Policy and Its Consequences
According to Cramer, recent trade measures by President Donald Trump have negatively impacted stocks. In early April, he announced increased tariffs, resulting in market instability. Following this, despite some easing, pressure continued to rise, particularly on companies heavily reliant on the Chinese market.
Outlook and Advice for Investors
Cramer believes that investors should re-evaluate their strategies without excluding US stocks. He recommends seeking companies with strong demand and growth potential even amid economic downturns. In his view, many S&P 500 companies still derive a significant portion of their revenue from abroad, making them more resilient.
Thus, the current dynamics of the stock markets require investors to remain vigilant and adapt to changing conditions. Leading analysts like Jim Cramer emphasize the importance of investment selection to minimize risks.