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March 5, 2025

The Case for Caution: Pessimism for the U.S. Stock Market Grows

In a recent analysis, I advised investors to rotate their portfolios away from the S&P 500 and consider European and German small-cap stocks, which have so far outperformed the U.S. market this year. The American economy is currently grappling with protectionist measures, escalating inflation, and declining consumer confidence, all worsened by recent tariff implementations and postponed tax reforms. This suggests a challenging environment for U.S. equities, warranting a more cautious approach from investors.

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