07 Nov Donald Trump elected President of the US (again)
Key Points
- The return of Donald Trump to the US presidency brings the prospect of more US tax cuts and deregulation, but also more tariff hikes and trade wars and policy uncertainty.
- His win was not the surprise it was in 2016, and markets have moved to adjust – but it means higher US bond yields, a higher $US & a knee jerk rise in shares. Shares could be threatened though by the higher bond yields and tariffs.
- Australia is vulnerable to an intensification of trade wars.
- While the US election is important, investors should bear in mind that many other things influence investment markets