”The US presidential election has always been a highly anticipated event as the future policy path of the world’s largest economy has major implications for global financial markets. As Donald Trump becomes the 47th President of the United States, we outline the impact it will have on investors around the world. Key take-aways: A second Trump presidency increases the likelihood of a continued favourable corporate tax regime alongside a low regulatory burden, which should be net positive for equities. *It is looking increasingly likely that the Tax Cuts and Jobs Act of 2017 will be extended, something that investors have been focusing on. * Uncertainty around inflation, fiscal deficits, and higher nominal growth are negative for bond markets and duration.
What’s the story? The US presidential election has been highly anticipated, not just for US investors, but for global investors too. Rarely has an election and its potential outcome affected markets to such an extent, and rarely has an election been so close. This has left markets without clear direction over the better part of last month.”
