Wealth strategies update

Trump 2.0: Why investors should expect a somewhat rougher ride, but it may not be as bad as feared

Donald Trump’s US election victory – that saw him win the popular vote (albeit only by 1.7%) with increased support from low income voters, various racial groups, women, the young, etc, with Republican’s having control of Congress – has shocked many. Particularly here in Australia where support for him was always low versus Harris. His detractors – and don’t forget 48.3% of American voters voted for Harris – see him as bad for the environment, diversity/equity and inclusion (DEI), inequality, democracy, the rule of law, global peace and the economy (via bigger budget deficits, inflation and trade wars). Weaker checks and balances this time around – including his inability to run again and more MAGA loyalists in his team suggesting a quick move to implement his policies – are seen as adding to such concerns. On the environment and DEI, it’s hard to argue otherwise as a majority of American voters have clearly put the economy ahead of the environment and DEI. But the old-fashioned “hip-pocket nerve” dominating in times of economic stress is nothing new – with the main issue in the US (Australia and elsewhere) being the rise in the cost of living and the fall in real wages over the last 4 years.