FNArena’s Weekly Insights – March 10 2025
In this week’s Weekly Insights:
-Preparing For Tougher Times Ahead
-Invitation To FNArena Subscribers & Readers
-On The Money Puzzle Podcast
By Rudi Filapek-Vandyck, Editor
Preparing For Tougher Times Ahead
A little over four months since the 2024 presidential election and circa seven weeks after Donald J Trump was sworn in as the 47th president of the USA, financial markets are grappling with the realisation this new administration is not simply about getting rid of red tape and lowering taxes.
There’s a much more radical strategy that is being rolled out, making America more isolationist and American businesses home base-focused. Forcefully unwinding 80 years of trading and investing globally will never be a rapid and smooth process.
Can it ‘work’ in the way the Trump administration thinks it should?
One of my favourite expressions, one I often use in relation to central bank policies and specific economic initiatives is: in theory, there is no difference between theory and practice. In practice, however, there almost always is.
It’s quite popular among investors these days to mock all those forecasts that economic recession and a savage bear market would be the result of never-before-witnessed central bank tightening but the consensus recession never arrived and the brief bear market for Quality, Growth and Technology stocks that did eventuate has long been forgotten about as these stocks rallied to fresh all-time highs by late last year.
Both economists and financial markets have an abysmal track record when it comes to accurately predicting the future, but one thing cannot be ignored or denied: markets don’t like uncertainty.
Right now, there are very few matters that remain set in stone or that can be relied upon with 100% certainty.
