Episode Details

In this podcast, Edmund Shing discusses the impact of President Trump's re-election and the Republican Party's control of major seats of power in the US.

• The "Trump trade 2.0" has led to a stronger US dollar, higher bond yields, a sell-off in gold, and higher US stocks, particularly benefiting US small cap stocks.

• The main drivers are expectations of lower corporate taxes, deregulation, and higher tariffs on imports, especially from China and Europe.

• There is uncertainty about the actual impact of these policies, as Trump will not take office until 20 January 2025, and the current Biden administration remains in power until then.

• Investment opportunities may lie in US agency bonds, short-term investment-grade corporate bonds, and gold, with a 12-month target of $3,000 an ounce.

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