Neither Mexico nor Canada, these are the stock markets racing ahead of the U.S. after recent falls

The S&P 500, along with the Nasdaq, fell again this week, but amidst Trump tariff turmoil, investing outside the U.S. in certain markets is proving a wise move for some investors.

Despite the rally in shares on April 9 after Trump said he’d pause some of his ’reciprocal tariffs‘, that still left the S&P 500 down 6.4% for the year. And this week, it fell again—down around 1.5%—as the President’s chaotic approach continues to shake market confidence. The Nasdaq 100 ended the four-day week with a 2.3% loss ahead of Friday’s holiday.

Some global markets move ahead

Given what’s happening in the U.S., investors are searching for safe havens amid the turmoil, and that’s seen many looking overseas, with shares in Exchange Traded Funds (ETFs) linked to various countries, including Brazil, Spain, Poland and Germany surging.

Just some examples: The iShares MSCI Poland ETF is up 32.2% this year, while the iShares MSCI Spain ETF has gained 24.6%, and the iShares MSCI Germany ETF is up 17.2%, according to Morningstar Direct.

The S&P 500 is still showing a one-year gain, but of only 6.8%. Compare that to the 22.9% gain posted by the Madrid Ibex 35, Spain’s principal stock exchange. That rise makes it the world’s best performing index, closely followed by Germany’s DAX which rose nearly 20%.

What’s not clear is how much America’s retrenchment will have knock-on effects around the globe. It’s yet to be seen what the final tariff situation will be in the US, and then what that means for international trade flows. What is clear is that the turmoil in the US has investors nervous and looking elsewhere for both safety and returns.

This article is for informational purposes only and does not constitute investment advice. All investments carry risk, and past performance is not indicative of future results. If you are unsure about your investment decisions, you should seek advice from a qualified financial professional.

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