Francois Savary lists the positives and negatives of a Trump administration for US stock investors. The US $ was strong following the election results but Francois cautions against a sustainably strong USD and expects a weaker USD next year. Bonds yields were higher and are not set to reduce in short term. Federal Reserve cut interest rates by 0.25% but will reduce the pace of future rate cuts. US EPS are expected to grow by 10% in 2025. Should we upgrade those expectations with the new Trump administration ? Elon Musk is touted as the new head of the efficiency department and expects to cut $2 Trillion from government spending. How realistic is this ? What about Small caps and Mid caps ? What about the defence sector ? Chinese stocks were subdued last week. Why is that ? European stocks were very subdued following the collapse of the German coalition government. Inflation weak ahead ?
