(AOF) – “While all signs point to a Donald Trump victory, we expect many of his populist policies to make waves, even if markets have been largely priced based on this result,” ask d Greg Hirt Global, CIO Multi Asset, Michael Krautzberger, Global CIO Fixed Income and Virginie Maisonneuve, Global CIO Equities.
According to the management company, Donald Trump's emphasis on lowering corporate taxes and further deregulation should favor American companies, particularly small companies with attractive stock market valuations . To some extent, tech companies could benefit from their loyalty to Donald Trump.
“While we expect some volatility to persist until the final outcome is known, the margin of victory suggests that risk-on sentiment may be starting to set in,” AllianzGI said.
Who also expects some flight to safety in the meantime. This reaction is expected to favor safe havens such as the US dollar due to expectations of a stronger economy, fiscal support and taxes leading to increased inflation, while gold may continue to be favored as a means of hedging geopolitical risk.
Geopolitically, AllianzGI believes that a Trump victory could carry more geopolitical risks than a Kamala Harris victory, as his strategy involves an unpredictable approach towards both allies and enemies. We should expect an increase in customs duties with China and potentially with certain European countries.
