What does Trump's 'mercantilism' mean for US investors?

Bone fide free trade has already disappeared

While the US celebrates Independence Day and freedom from the British, there is no better time to take a look at what US President Donald Trump's mercantilism means for the US investment outlook, given Europe's own mercantilism served as stepping stones to the American Revolution.

However, the problem with mercantilism in the XXI century is that its ultimate economic consequences could be quite different from what they were when this economic theory was first implemented in Europe, in the XVII century. The posture taken on trade by the US towards China, but also Europe, and most recently India, is happening at an awkward time for the US economic cycle. It puts at risk in the short term an economy already evidencing signs of slowing momentum. Indeed, the global economy has been decelerating significantly over the past 12 months, and while the US dynamic remains sup...