SUMMARY

The article from The Hindu BusinessLine, published on June 6, 2025, titled "US markets are no longer safe for investments, Carmignac says," reports concerns raised by Raphael Gallardo, chief economist at French asset manager Carmignac, about the U.S. as an investment destination. 

KEY POINTS

1. Trump’s Tax and Spending Bill: Gallardo warns that President Donald Trump’s tax and spending bill, particularly Section 899 (dubbed the “revenge tax”), increases tax rates for individuals and companies from countries with tax policies deemed discriminatory by the U.S., undermining investor confidence.
2. Shift to Europe: Carmignac, managing €34 billion ($39 billion) as of late 2024, is diversifying its asset allocations away from the U.S. to Europe, where Germany’s fiscal reforms are boosting economic growth prospects.
3. Global Financial Concerns: The firm’s presentation, titled “From America First to Global Financial Anarchy,” highlights the U.S. as an unreliable military ally and the need to secure supply chains and find new markets amid geopolitical uncertainties.
4. Market Sentiment: The Wall Street consensus echoes concerns that Trump’s trade policies and deteriorating U.S. fiscal accounts further erode trust in U.S. assets, prompting foreign investors to look elsewhere.

The article underscores growing apprehensions about the U.S. investment climate due to policy risks, with Carmignac advocating for a strategic shift toward more stable markets like Europe.

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