03 December 2024
Contrary
The recent US elections resulted in a clear Republican victory, contrary to polls that had predicted a very close race. This outcome led to a positive reaction in the markets. A Republican-controlled Congress would give the party significant control over the legislative agenda. With a Republican Senate, President-elect Trump will be able to smooth his political policy and push major agenda items, like deregulation. President-elect Trump aims to reduce the corporate tax rate from 21% to 15%. However, these proposals could increase the deficit by USD 7.5 trillion over a decade, raising debt to 142% of GDP. Higher tariffs on China and other trading partners are likely, with Trump suggesting a 10% tariff on all imports and a 60% tariff on Chinese imports.
After the U.S. presidential election in November 2024, equity markets experienced a positive response, driven by reduced political uncertainty and favourable market dynamics. Additionally, expectations of further interest rate cuts supported optimism, as lower rates often enhance equity valuations. An active corporate buyback season and strong earnings reports also buoyed markets. Despite the rally, concerns over geopolitical tensions and potential Federal Reserve decisions introduced an element of caution, with investors remaining alert to external risks. Overall, the equity markets reflected optimism, underpinned by a combination of resolved uncertainties, supportive monetary conditions, and corporate performance, continuing a historical trend of post-election strength.
Product Recommendation
| EQUITY FUND | |
|---|---|
| MGSED A | MGSED invests in Sharia-compliant Equities Abroad listed in the Sharia Securities List. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the equity portfolio. |
| MASED A | MASED invests in Sharia-compliant Equities in Asia listed in the Sharia Securities List. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the equity portfolio. |
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DISCLAIMER
The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or recommendations for individuals or specific mutual fund or investment products. It is intended solely to provide education about the financial industry. Views reflected in the content may change at any time without notice. All performance data and investment returns mentioned in this article cannot be used as a basis for calculation to buy or sell a mutual fund. This data is performance records based on historical data and is not a guarantee of future mutual fund performance. Investment through mutual funds carries risks. Investors are required to read and understand the prospectus before deciding to invest through mutual funds.
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