S&P is down more than 25% in Swedish krona, but only 16% in dollars; Exceptionalism; this selloff different
Exceptionalism; this selloff different
After another huge selloff, it’s best to say that what’s going on isn’t an eruption or an earthquake.
If there’s a good geological metaphor, it might just be a landslide; it doesn’t start so dramatically or damagingly, but as time goes by gains momentum and gets harder to stop.
That makes this selloff different from most, and also makes it even harder to grasp where the market is going next.
The dollar continues its fall, and this amounts to much more pain for the rest of the world. It’s foreigners who have poured money into US stocks in the last few years, and the combined decline of US stocks and the currency means hideous losses.
In two months, the S&P is down more than 25% in Swedish krona, but only 16% in dollars
The rest of the world is hugely exposed to the US, treating its stock market as a piggy bank during the time of the “US exceptionalism” trade.
This exposure has long looked dangerous, but when the American economy whirred like a perpetual motion machine, and provided the safest jurisdiction on the planet, that risk looked minimal.
Once confidence is lost and people try to repatriate money, the landslide can build momentum.
It needed a catalyst, a first rock to slip, and Trump 2.0 seems to have provided it.
John Authers Bloomberg 22 april 2025
Svenskar har sålt USA-fonder för nästan 30,3 miljarder kronor hittills i år.
Bara i mars nettosåldes USA-fonder för hela 16,4 miljarder kronor – det högsta utflödet hittills, enligt Fondbolagens förening.
https://www.di.se/analys/svenskarna-rekordsaljer-usa-fonder/
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