“Trumpel” alarm on the stock markets

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  Martin Raab
  Investment-Stratege

The pen with the black ink is glowing. By Tuesday morning, President Donald Trump had signed more than 50 executive orders. This is a new record for a president in over 40 years. Even intimate connoisseurs of the Washington political circus have been struggling for days to name all the executive orders.

Part of the national debt canceled for 50,000 new homes

The orders, which Trump critics say far exceed his constitutional powers, range from the well-known tariffs against Mexico, China and Canada to the suspension of foreign aid, a crackdown on illegal immigration and a ban on transgender people serving in the military. The latest coup is a plan to rebuild the Gaza Strip. What sounds bizarre at first glance could work better than expected in reality. The construction of a new satellite city for 2 million inhabitants on the Sinai – in return, Egypt would be forgiven around USD 30 billion of its current foreign debt of USD 155 billion. This would require the construction of around 50,000 new houses for around 40 people each. Sounds good or too crazy? The valuation is more difficult than the concrete to be transported in return.

Dollar and Wall Street increasingly in the news fog

At the same time, very shrill tones are circulating in the daily press about the takeover of Panama and Greenland by the USA. The purchases are to be financed in US dollars and through federal debt. Really? The US dollar is still rushing from all-time high to all-time high – especially against the EUR and also a little against the CHF. But now comes the first brief reversal. It is also unclear where the US stock markets are headed. The euphoria and expectations of recent weeks and months are increasingly becoming ballast instead of a stabilizer. Investors are therefore strongly advised to switch off the autopilot in their portfolios and drive with all their might on sight. At worst, the strange sounds that have recently been heard from the Oval Office are the economic foghorn of the American trinity: the dollar, Wall Street and inflation. With his latest actions, Trump could be heading straight for the iceberg. The stock market is crashing, the expensive dollar is making it impossible to turn away from the trade deficit and at the same time consumer prices are continuing to rise due to tariffs and quotas. No executive order will help against this.