𝗨𝗦 𝗲𝗹𝗲𝗰𝘁𝗶𝗼𝗻: 𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝗧𝗿𝘂𝗺𝗽'𝘀 𝘃𝗶𝗰𝘁𝗼𝗿𝘆 𝗺𝗲𝗮𝗻 𝗳𝗼𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝘀?
𝗔𝘁 𝗮 𝗴𝗹𝗮𝗻𝗰𝗲:
🔴 Donald Trump’s policy promises such as increased tariffs could cause inflation to rise.
🔴 We expect to see short-term market volatility, but do not act on speculation. We remain anchored to our long-term investment views.
🔴 It is important to avoid a knee jerk or emotional response after such a divisive election.
After a close fought race, Donald Trump is poised to become the 47th President of the United States. Looking at Trump’s campaign promises, as well as his actions during his last presidency in 2017, expectations are for reduced regulations across the board. Additionally, expectations are he will focus on immigration and a greater use of tariffs in international trade. How this will play out and be received by markets remains uncertain.
The 2024 election has been a divisive one. With so much noise, it is bound to impact. We remain focused on delivering long-term investment outcomes and maintain conviction in our current positioning. We think making bold calls on the future based on a single event can lead to poor decisions.
𝗥𝗼𝗹𝗲 𝗼𝗳 𝗖𝗼𝗻𝗴𝗿𝗲𝘀𝘀
It is also worth considering the roles the Senate and the House of Representatives (combined known as Congress) play in US politics when discussing Presidential elections.
American politics is built on a system of checks and balances, which is why control of these two branches of government are key to the policies a new government can introduce.
When he was the 45th president, Trump made strong use of executive orders, which do not necessarily need approval by Congress. Such orders by US presidents have historically related to routine administrative matters. More recently they have been used for more significant policy changes. Trump signed 220 executive orders between 2017 and 2021. This compares to 277 executive orders signed by President Barack Obama between 2009 and 2017.
Additionally, the US holds mid-term elections in 2027 so the composition of Congress may change again soon.
You can read this article in full in the link below which covers:
🔸 Potential inflation
🔸 Fixed income
🔸 Impact on equities
🔸 Managing risks
➡️ https://ow.ly/aSrf50U1ao2
