The news has just broken: Donald Trump becomes the 47th American president, 8 years after his first coronation.
With Donald Trump's victory in the 2024 presidential election, major changes are in store for the financial markets. Topping his economic agenda are corporate tax cuts and renewed support for fossil fuels, especially oil and coal.
His protectionist economic policy includes high tariffs on certain imported products, which could exacerbate trade tensions, particularly with Europe and China, which is already considering retaliatory measures.
This pro-business stance could benefit the energy and pharmaceutical sectors, as well as small & mid caps, encouraging earnings growth and renewed domestic investment.
At the same time, cryptocurrencies could benefit from looser regulation, as Trump has expressed a new interest in the digital sector, stimulating innovation and investment.
However, his program of tax cuts, coupled with increased defense spending, is likely to increase public debt to record levels by 2035, creating significant fiscal challenges.
Finally, expected trade tensions with China could disrupt global supply chains, triggering imported inflation that could affect various industries, prompting investors to favor gold as a safe haven in times of heightened uncertainty.
We'll be sure to keep you posted on the future implications of Donald Trump taking office and the exact makeup of Congress.