Donald Trump’s promises of tax cuts and deregulation have sparked a significant surge in American growth and tech companies. An analysis conducted by Nordnet reveals that funds like MS INVF Global Growth have skyrocketed by a whopping 28% in just one month. Additionally, cryptocurrencies have received an extra boost, with the Go Blockchain Fund seeing a 15% increase in the same timeframe.
The winners of this economic shift are evident in the performance of various funds, such as MS INVF US Growth, MS INVF Global Insight, and MS INVF US Advantage, all posting impressive gains ranging from 22% to 28%. Tech-focused funds like Schroder Gaia Contour Technology, JPM US Technology, and MetaSpace Fund have also experienced notable growth. This data, sourced from Nordnet’s platform, paints a clear picture of the market’s response to the new administration’s policies.
On the other hand, there is a growing concern over rising inflation and the possibility of fewer interest rate cuts from the Federal Reserve (FED). Interest rates have already increased post-election, and further hikes may occur if tax cuts contribute to a larger US budget deficit. This uncertainty has led to a downturn in the real estate sector following the US election.
The losers in this scenario are apparent in funds like PLUS Fastigheter Sverige Index, Catella Fastighetsfond Systematisk, and IKC Fastighetsfond, all experiencing declines of around 10-12%. This trend is mirrored across various real estate funds, signaling a shift in investor sentiment towards these sectors.
In summary, the economic landscape post-election is a mix of winners and losers, driven by the anticipation of policy changes under the new administration. While growth and tech companies thrive on the promise of tax cuts and deregulation, the real estate sector faces challenges amid concerns over inflation and interest rates. This dynamic environment underscores the importance of monitoring market trends and adjusting investment strategies accordingly.