Election Impact on Global Markets and Investment Trends Beyond 2024

Executive Summary

During our latest Index More webinar by Satrix, Nico Katzke, Head of Portfolio Solutions at Satrix*, moderated a panel discussion on the implications of the recent US election results on global trade, inflation, and investments.

The panel, featuring experts from BlackRock and Satrix, analysed Donald Trump's victory and his dominance in the Republican Party, highlighting the broader global anti-incumbency trend driven by economic dissatisfaction.

The discussion covered expected fiscal policies under the new administration, including tax cuts, deregulation, and a protectionist trade stance, with potential tariffs on China.

Natasha Sarkaria, EMEA Investment Strategy at BlackRock, highlighted a positive post-election market response and improved investor confidence, while Ralph Thomas, Head of Balanced Funds at Sanlam Investments, and Kingsley Williams, Chief Investment Officer at Satrix, discussed strategic asset allocation adjustments in response to the evolving economic landscape.

The session emphasised the importance of a disciplined, long-term investment strategy, balancing short-term opportunities with strategic goals, and focusing on asset classes with strong return potential and diversification benefits.

Speakers 

• Jack Aldrich, Senior Advisor, Geopolitical Research and Strategy, BlackRock 
• Natasha Sarkaria, EMEA Investment Strategy, BlackRock 
• Kingsley Williams, Chief Investment Officer, Satrix 
• Ralph Thomas, Head: Balanced Funds, Sanlam Investments 
• Nico Katzke, Head of Portfolio Solutions, Satrix

Key Takeaways 
 

1. Trump Election Impact: The US election results, with a decisive victory for Donald Trump and the Republican Party, had significant implications for global trade, inflation, and investments.
2. Global Anti-Incumbency Trend: The panelists highlighted a broader global anti-incumbency trend driven by economic and social aftereffects of the COVID-19 pandemic and inflation.
3. Trump Fiscal Policies: Expectations for the new Trump administration included fiscal policies such as tax cuts, deregulation, and a protectionist trade stance with potential tariffs on China.
4. Post-Election Market Confidence: Investor confidence and market stability improved post-election, with significant inflows into US equities and sectors perceived as Trump trade winners, highlighting the US election impact on stock market.
5. BlackRock Investment Strategy: BlackRock's investment strategy focused on a solid US economic backdrop, improving earnings growth, and sector convictions in financials and banks.
6. Trump Geopolitical Approach: The geopolitical landscape under Trump was expected to be highly personalised, transactional, and protectionist, with a focus on trade and the potential ad hoc use of tariffs.
7. Long-Term Investment Strategy: The panelists emphasised a disciplined, long-term investment strategy, balancing short-term opportunities with strategic goals, and focusing on asset classes offering compelling returns and diversification benefits.

Webinar 
Watch full on-demand Webinar here.

This event is CPD-certified.

Disclosure

Satrix Investments (Pty) Ltd is an approved FSP in terms of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision. Satrix Managers (RF) (Pty) Ltd (Satrix) is a registered and approved Manager in Collective Investment Schemes in Securities. While every effort has been made to ensure the reasonableness and accuracy of the information contained in this document (“the information”), the FSPs, their shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaim all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.