Global Markets Kickstart: Post Election Investment Ideas
Post Election Investment Ideas
Chart of the Week: Fed Cuts Rates by 25
bps, Market Now Expects Only Two Cuts Next Year
The Fed delivered a 25 bps rate cut, lowering the target range to 4 5 4 75 aligning with market expectations The statement revised “job slowdown” to “labor market easing earlier this year” and removed confidence in reaching the 2 inflation target In the post meeting press conference, Powell emphasized no preset path for future cuts, highlighting room for policy adjustments
Market Recap: U.S. Election Results: Red Wave Boosts Equities
Donald Trump won the U S presidential election with 301 electoral votes, as voters believed he could better bring back manufacturing jobs and tackle inflation and prolonged overseas conflicts The U S economy showed resilience with October’s Services PMI rising to 56 0 from 54 9 in September, beating expectations of 53 8 and hitting its highest level since August 2022 The Fed also delivered a rate cut as expected, signaling a gradual easing cycle ahead This drove the Philadelphia Semiconductor Index sharply higher, with the Nasdaq and S&P 500 reaching new all time highs post election However, investors should watch for potential profit taking at market peaks
What’s Trending: AI Titans’ Capex Surges, Long
Term Growth Trend Intact
With major U S earnings reports rolling in, the market is keen to see if the AI wave can sustain momentum According to Goldman Sachs, the capital expenditure of the top four AI players ( Google, Amazon, and Meta) is projected to reach 255 4 billion in 2025 and 286 7 billion in 2026 reflecting YoY growth of 21 1and 12 3 respectively The
In Focus: Trump’s Policy Focus: Tax Cuts, Tariffs, Immigration Restrictions
The Democratic Party’s struggles with inflation, economy, and foreign policy have enabled
Trump’s return to the White House, with Republicans now controlling the House Full
legislative power suggests most of Trump’s policies will advance, including tax cuts, higher tariffs, and immigration restrictions Immediate actions via executive orders may involve increased tariffs, deporting illegal immigrants, and easing corporate regulations Legislative
Trump has won the 2024 U S presidential election, with the Republican Party gaining a majority in the Senate and maintaining a lead in the House The Supreme Court’s conservative majority stands at 6 3 suggesting the GOP will face few obstacles in implementing policy over the next two years This result signals potential major shifts in global economic, political, and military dynamics, with expectations for renewed trade tensions, secondary inflation risks, and regional military conflicts to ease.
