For decades, the United States has been considered a safe place for investments, but lately this faith has been shaken by the tariff assault launched by President Donald Trump. The volatility created by it now pushes many investors to sell more categories of American assets and direct their money to more stable markets, a strategy now known as «Sell America». Do investors lose their confidence in America and implicitly in the US dollar? The currency is caught in this tendency, depreciating over 9% this year. And the analysts believe that the decline will continue. Peter Dragicevich, a strateg at Corpay, says that investor confidence in the US has been shaken, according to The Guardian. «It is not a complete loss of confidence, but a weakening of it because of US policy.» The decline of the dollar led to the appreciation of other coins in relation to it. The Euro has been performing strongly over the dollar in the last month, in what could be interpreted as a vote of distrust in the American economy. And the Russian ruble was appreciated by 40% in relation to the US dollar from the beginning of the year. With a few exceptions, a weaker dollar is a relief for governments and central banks around the world, analysts say, according to CNBC. With many countries with emerging markets with large dollars, a weaker dollar reduces the burden of these debts. In addition, a weaker dollar and a stronger local currency tend to make relatively cheaper imports, lowering inflation and offering central banks to reduce growth impulse. However, while a stronger local currency can help to tame inflation via cheaper imports, it erodes competitiveness to export. Will Sell America left US Poor US? Chinese Tech companies are still targeting American markets despite turbulence, and companies in Europe still bring money and factories in the US. Beijing Smart Walnut Education Technology is one of a series of Chinese companies that analyze possible IPOs in the US despite the escalation of tensions between Washington and Beijing, familiar sources with the situation told Bloomberg. From Europe, VW intends to move some of the Audi production to the US. Roche recently announced an investment of $ 50 billion in America, which will create over 12,000 new jobs in the next five years, writes Portfolio. Also, LVMH, Novartis and Mercedes have announced similar intentions of partial relocation or entirely of the American soil, according to the stands. On the other hand, Sell America has been buy German for some time. The simultaneous growth of the euro and the German bundles this month suggests an exodus of capital to the reference titles of the euro area seen as a refuge in the face of the turbulence arising from the commercial war, investors say, notes the Financial Times. But significant obstacles remain for them to replace the American treasury titles as a favorite refuge as an overall level.
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