Trump 2.0 & Global Capital Markets

Foreign investors held 37% of US equities last quarter. They’ve clearly sold some of that in the wake of the Trump 2.0 uncertainties. But might the US’s perceived beggar-thy-neighbor policies actually reverse the tide of inflows into US assets? Eric explains why that fear is unlikely. … Also: While a goal of Trump 2.0 policy is to lower US Treasury bond yields, the administration’s protectionism may work against that goal. US protectionism has motivated foreign economies, specifically China and Germany, to stimulate their domestic demand via deficit-financed fiscal easing, driving up their bond yields—which may limit how low US yields can go.