End of ‘America First’ Stock Trade Postponed After China Wipeout
- You ‘just don’t know’ when the crackdown will end: Krake
- KWEB ETF has lost almost a quarter of its value since Thursday
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There’s been a growing sense in some Wall Street circles that the “America First” trade was just about played out in the stock market. After all, U.S. equities had become markedly more expensive than global peers, and with Covid vaccination rates in other parts of the world starting to catch up to U.S. levels, it was only a matter of time, the thinking went, before more money poured into those economies instead.
But Beijing’s crackdown on tech and education companies, which has sparked a spectacular rout in Chinese stock markets this week, blindsided investors so badly that some are suddenly re-assessing their plans to carry out this shift.