Boom to gloom
Australian stocks saw another substantial drop today after further declines on Wall St as the US president continues to swerve on tariffs. But is the selloff overdone?
Donald Trump was meant to be a boon for markets. Instead, the US president's return has been marked by mounting selloffs — and he's blamed his adversaries for the mess.
The ASX fell 1.8% today, mimicking moves on US equity markets overnight.
Exactly what has triggered the declines is up for debate, but there are plenty of contenders and all of them point back to the White House, at least to some extent.
Ten Cap chief investment officer Jason Todd said a storm of uncertainty is hitting markets that just weeks ago had been priced for perfection.
“The magnitude of the selloff is a reflection of elevated valuations and very, very heavy positioning with a very thin margin for uncertainty and disappointment,” Todd said, while adding that he thinks the Australian market reaction is “overdone”.
