Overview

• US stocks have entered a 10% correction, with the S&P 500 dropping sharply from its peak late last year.
• Global fund managers reduced their US equity holdings at a record pace, with allocations now at their lowest level since June 2023.
• Investor concerns center on stagflation, with 71% predicting a combination of high inflation and slow growth within the next year.
• European stocks are experiencing their strongest start to a year since the mid-1980s, driven by Germany's rearmament and stimulus initiatives.
• The Trump administration has dismissed stock market declines and reaffirmed plans to implement additional tariffs next month, despite growing fears of a global slowdown.