The US dollar has suffered significantly, recording its worst first half-year in over 50 years. Geopolitical tensions and Donald Trump’s trade war have dominated financial markets, causing anxiety among investors and undermining confidence in our national currency.
Since the start of 2025, the dollar has plunged by 10.8% against a range of currencies. Such a decline is not just a statistic; it reflects a loss of trust in our financial governance and a departure from sound economic principles, marking the poorest performance seen since 1973.
The traumas inflicted on the dollar have resulted in its lowest index level since March 2022, while the pound has surged to a three-year high of $1.37 from $1.25 earlier this year. This trend is alarming; it underscores a disconcerting weakness in our economic leadership and a plunge into uncertainty.
Investor skepticism stems from concerns that Trump’s economic policies threaten the stability that the dollar has traditionally afforded. Economists predict that the administration’s “big beautiful” budget bill will only exacerbate an already alarming national debt crisis. This pattern of fiscal irresponsibility cannot continue without dire consequences.
Unicredit analysts noted, “The US dollar is the most notable loser so far this year,” losing 10% against other currencies. Such setbacks appear to be a direct reflection of a government that has strayed from conservative fiscal principles, opting instead for shortsighted expediency.
David Morrison, a senior market analyst at Trade Nation, remarked on the detrimental perception of Trump’s administration, where chaos and rising national debt have diminished confidence in the dollar. Rising expectations for US interest rate cuts only compound this issue, driven by the President’s constant criticism of Federal Reserve Chair Jerome Powell.
The broader market landscape remains rocky, characterized by volatility and uncertainty, a surefire recipe for investor anxiety. Chris Iggo from Axa IM illuminated the deceptive narrative of a seemingly strong market; quick reversals in risky asset values are indicative of deeper flaws within our economic framework.
2025 has witnessed stock markets flutter between gains and losses, seldom reflecting true economic stability. Carsten Brzeski from ING Research described the year as “action-packed,” noting key events such as tariffs, fiscal mismanagement, and geopolitical strife that have left many investors spinning.
As tensions mounted through March, Trump’s confrontations over trade deals with countries like China and Mexico triggered a broader market sell-off. His announcement of steep “Liberation Day” tariffs in early April alarmed investors, causing the worst week for US markets since 2020. This panic led to a 90-day tariff pause, a clear indication of the volatility and instability surrounding this administration’s economic policies.
Despite having only finalized a single trade deal with the UK, anticipation for future progress momentarily revived the market, demonstrating not a robust economic strategy, but a reactive and inconsistent approach to governance. The S&P 500 managed to reach record highs again, but only through luck rather than sound economic fundamentals.
According to Bloomberg, the recovery in the stock market was notably rare, as it only marked the third instance in a century where the S&P 500 fell 10% and bounced back within the same quarter. Yet, this resurgence should not deceive anyone; it is but a short-term flicker in a broader narrative of economic decline.
Analyst Ipek Ozkardeskaya noted that the market’s rally lacked substantive progress on trade talks and was fueled instead by speculation. Pessimistic sentiments linger regarding the Federal Reserve’s intentions, with many betting on rate cuts as businesses hope for a respite from tariff pressures. Optimism seems unwarranted amidst wavering confidence.
While US markets have struggled to keep pace compared to their European counterparts, it’s evident that investors are recalibrating their strategies. The S&P 500 registered only a 5% gain, trailing behind Europe’s Stoxx 600, UK’s FTSE 100, and Germany’s Dax. Such trends reveal a troubling loss of favor for US investments, rooted in the chaotic climate of government overreach and lack of adherence to principled economic stewardship.
Technology stocks illustrated varied performance; Meta thrived with a 25% increase while Apple faced almost a 20% loss. This disparity illustrates a corporate dynamic shaped not by market fundamentals, but rather by macroeconomic pressures stemming largely from the mismanagement of trade policy.
Dean Turner from UBS described the initial optimism for 2025 as quickly extinguished in the wake of chaotic tariff announcements that triggered the sharpest equity correction since the pandemic. A fleeting recovery was seen only as tariffs were paused and AI-driven earnings provided a veneer of confidence.
The year has also marked a robust performance for gold, which surged by 25% as investors increasingly sought refuge in safe-haven assets. A sensible strategy, considering the instability sown by irresponsible policies and the incompetence of governing elite.
