The Impact of the 2024 US Presidential Elections on Global Markets

The 2024 US presidential elections are shaping up to be the central political, media, and economic event of the year. The United States is a relentless generator of technological and economic development, which spills over into growth on American stock exchanges. Against the backdrop of such an optimistic market environment, this year leading up to the elections has seen stock indices hitting new record highs week after week.

Expected Tax Cuts, Deregulation, and Fiscal Stimulus

With a Republican victory, economists anticipate tax cuts, deregulation, and a markedly stimulative fiscal policy under Donald Trump’s administration. This is expected to have a positive impact on American companies, particularly in sectors such as energy, finance, and industry.

  • Tax cuts and reduced regulation could lead to higher profits for companies and provide a boost to stock prices.
  • However, this scenario could also increase inflationary pressures, potentially prompting the US central bank to maintain higher interest rates or even raise them in a pessimistic scenario.

A Positive Period for Global Stock Markets

Historically, the period following elections has been positive for global stock markets, regardless of the outcome, especially for cyclical and value stocks. Additionally, December, known as the most profitable month for stock markets, is just around the corner. Favorable macroeconomic conditions in the US support further stock market growth. History teaches us that ultimately, what matters for markets, regardless of the president’s party, is the key state of the economy and expectations for future profit growth.

Increase in Domestic Investments and Exploration of Opportunities

There are noticeable shifts in the domestic financial market, with household investments steadily increasing. According to data from the Bank of Slovenia, household financial assets reached €82.9 billion at the end of the second quarter of 2024, reflecting an increase of €6.7 billion in the past year. This indicates a growth in savings and a desire for higher returns, which may prompt investors to consider alternative options like the stock market.

From Banks to Stocks: Where Are the Opportunities for Your Savings?

Bank of Slovenia data shows a significant increase in equity investments in Slovenia, especially in non-financial companies and investment funds. Despite the higher risk associated with stock investments, the current financial trend opens doors for long-term investors seeking opportunities to optimize their savings. It is important to consider that markets offer different segments – from technology companies to industrial stocks – where investors can adjust their strategy based on the level of risk they are willing to take.

Generali Investments Invites You to a Free Financial Webinar

Join Generali Investments’ free financial webinar where we will discuss current financial trends and uncertainty post the US elections, emphasizing the need to grow your money on the stock market rather than in banks. You will learn:

  • Where Slovenians hold most of their personal savings
  • How inflation and interest rates affect the value of your money
  • Current events in capital markets
  • How to manage personal finances in a time of declining interest rates
  • The benefits of investing in mutual funds and how they can ensure long-term wealth growth

This is a marketing message. Before making investment decisions, read the key investor information documents and prospectus. Generali Investments d. o. o., Ljubljana.

This promotional content is sponsored by Generali Investments.

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