How the US market fell from 4th to 41st for returns – and what it means for stocks in 2025

NEARLY two months after US President Donald Trump roiled markets with his on-again, off-again “reciprocal” tariffs and universal 10 per cent levy, uncertainty remains. My last column showed the illogic underpinning this – and counselled patience. Here is an update – and how to profit.

Trump says America “wins” through his tariffs, reclaiming “lost” manufacturing jobs and cutting the trade deficit. No. Tariffs always hammer most the one who imposes them. Don’t take my word for it. Look to the markets. For any good capitalist, this is step one. Markets are a lie detector, weighing talk, forecasts and opinions – and rendering verdicts.

Non-US stocks were up 8.8 per cent this year to May 22. The Straits Times Index gained 4.9 per cent, a hair’s breadth from all-time highs. China? Up 10 per cent. European stocks rose 13.7 per cent. Mexico, up 20.7 per cent. US stocks? Down 5.5 per cent – a striking lag.