Trump's trade policies cause global market volatility

Investors are reacting to significant market fluctuations following Donald Trump's trade policies since his inauguration. The S&P 500 has dropped over 8%, entering a correction, while the ASX 200 has fallen 7%, reflecting global concerns about a trade war. Many popular investment strategies have lost favor as investors shift towards European shares and gold. The defense sector in Europe has performed well, driven by anticipated military spending increases. The impact of Trump's tariffs on Australian exports remains limited, primarily affecting aluminum and steel. However, the volatility in share markets may influence consumer confidence and superannuation funds, which have seen slight losses recently.