Europe just started building a ‘kill switch’ for U.S. tech — and the market isn’t priced for it, says this strategist

Group 1 - The nomination of Kevin Warsh to lead the Fed has diminished concerns about the U.S. dollar's decline, but a significant shift away from U.S. assets is being overlooked by investors [1][2] - Tuttle argues that the main reason for the outperformance of international and emerging market equities is a global move towards reducing dependence on U.S. policy and platforms, which is evident in various sectors including procurement, supply chains, and capital flows [2][3] - This trend has led to substantial gains in European defense stocks, as the reliability of the U.S. as a military ally is questioned, and there is a growing focus on digital sovereignty in Europe [4][5] Group 2 - Digital sovereignty is viewed as a civilian counterpart to military rearmament, emphasizing the need for Europe to maintain control over its communication and core systems in case of deteriorating relations with the U.S. [4][5] - France is actively encouraging state workers to avoid using Zoom to ensure secure public communications, while Germany is transitioning public-sector workflows to open-source solutions to reduce reliance on U.S. technology [5] - Tuttle identifies several European companies that may benefit from this shift, including OVH Groupe for sovereign cloud initiatives, IONOS for hosting, Orange for infrastructure, Deutsche Telekom for public sector relevance, and Capgemini for migration and integration services [7]