Analyst: This US election will not change the long-term macro market outlook
Michael Brown, an analyst at Pepperstone, stated that Trump's victory may draw attention to inflation, expected tax cuts, and potential tariff issues in the market. The initial market reaction may include a rise in the US dollar and a drop in government bonds. The expectation of reducing regulatory burden may boost the stock market, especially energy and defense stocks.
He said that Harris' victory may lead to a weaker US dollar, as the hedge operations related to Trump are lifted, and the forex market, which is sensitive to trade, may "breathe a sigh of relief." The expectation of more expansionary fiscal policies may put pressure on government bonds, while concerns about stricter regulation may put pressure on the stock market. However, the decline may be quickly absorbed on dips, and clean energy and technology stocks may perform better. This largely depends on the composition of Congress. For those who want to know if this election will change the long-term macro or market outlook, Brown's answer is "definitely not." (Jinshi)
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