The decline of 3.3 percent is the largest on the Stockholm Stock Exchange during a single trading day since the "bank panic" on March 15, 2023. Even leading European stock exchanges fell heavily.
Despite Trump's threats and all the talk about tariffs, it's very clear that the market was not prepared for this, says Frida Bratt about the US's raised tariffs against China, Mexico, and Canada, which came into effect on Tuesday.
Nordnet's savings economist believes that it may get worse before it gets better and says that investors and savers should prepare themselves for continued turbulence ahead.
Right now, it's very volatile. There are many new messages all the time, and the stock exchange is on its toes and reacting very strongly. You have to be prepared for that in the coming weeks at least.
The Stock Exchange May Tire
If it continues in the same way, one can imagine a scenario where the stock exchange tires of the strong reactions and stops taking the outbursts seriously, she believes.
At the same time, it's a bit like what we've seen now, that the stock exchange tired and interpreted the tariff threats as a negotiating tactic, and therefore it was such a cold shower.
The focus going forward will be, according to Bratt, what effects a trade war has on the American economy.
Trump's signature is a growth-friendly policy. Now we got a reassuring inflation figure last week, but if you start to see that prices are getting higher for American consumers and that growth is slowing down, it becomes very interesting.
Trump's Interest
Donald Trump, notes Frida Bratt, has a great stock exchange interest. During his previous term, it happened that he backed down from decisions after negative reactions from the market. Something that could happen now as well, she says.
How should you then think as a small saver? Avoid acting too strongly on short-term movements and spread the risk, advises the savings economist.
If you have a global fund that contains a lot of USA, it's wise to complement it so that you have exposure to multiple regions and multiple sectors. Then you reduce your vulnerability when it hits.
