29 MAY 2025
A significant shift in equity market leadership remains underway.
The chart below shows how the local stock markets of America’s key trading partners have performed since last November’s Presidential election.
It’s a gauge of relative returns so compares the respective index against the world stock market, in dollar terms and rebased to 100.
The three lines represent the main Chinese exchange (dark blue), Mexico (red) and Canada (light blue).
The message is clear.
The countries on the receiving end of Trump’s tariff war are seeing their stock markets significantly outperform.
This is contrary to what most investors expected and chimes with the idea that capital is rotating away from US assets.
Given the pronounced outperformance of US equities over the past decade, this trend could amplify going forward even if US stocks do rebound near-term.
The content of this communication is for information purposes only. Bentley Reid believes that, at the time of publication, the views expressed and opinions given are correct but cannot guarantee replication of depicted performance. Viewers intending to take action based upon the content of this communication should first consult with the professional who advises them on their financial affairs. Capital invested will be at risk, and you may get back less than you invest. The past is not a reliable indicator of future performance. Neither the publisher nor any of its subsidiaries or connected parties accepts responsibility for any direct or indirect loss suffered by a recipient as a result of any action or inaction, in reliance upon the content of this communication.
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