Trust is a key factor in determining how well a country excels, or not, also on how stocks are valuated.

In a book called "Trust”, by Francis Fukuyama 1995 it is well documented how trust in governments (and companies) is a/the key factor in determining how well a country excels, or not, on so many different levels....and how its stocks are valuated.

Trust in the US govt. and the US-congress/US President especially -has vastly eroded in recent years to alarming levels. This is very well documented by all kinds of surveys! Trust is the key to economic success around the Globe. Norway, Sweden, Denmark and Switzerland excel on this for years -and it shows in their happiness factor and overall country success.

Trust erosion is real and significant in the US in recent years and even more so of late, and this will in time dent p/e ratio's and so stock valuations and even its currency -and is one core reason why I am/remain US stocks very cautious and why past good returns is not indicative of the future. (Also well documented in “Credibility” by Kouzes and Posner, 2003).  Here you can see an original article by me from 2007 on this.   https://thaistocks.com/content/higher-trust-favors-smaller-company-here-0

Best Regards,