New Peaks and Cut
Record Highs and a Rate Cut signal new momentum in November Markets:
- Record Stock Market Highs: the Dow Jones Industrial Average surpassed $44,000, while the S&P 500 crossed $6,000, reflecting strong investor optimism
- Bitcoin’s New Peak: bitcoin reached an all-time high of over $89,000, driven by increasing demand, confidence in cryptocurrencies as an alternative asset and a clear Trump effect
- Federal Reserve Rate Cut: The Fed implemented a 25 basis point rate cut, lowering the federal funds rate to 4.25%-4.50%, aiming to sustain growth in a shifting economic environment
Trump’s Return: Shifting Expectations
Trump’s re-election could drive significant shifts in U.S. economic policy, creating both opportunities and challenges across key industries:
- Corporate Tax Cuts: tax cuts may boost profitability in energy and finance, likely increasing shareholder returns and stimulating expansion
- Energy & Deregulation: deregulation may favor traditional energy sectors, raising competitiveness but posing challenges for green initiatives
- Renewed Trade Tensions: global trade policies, especially with China, may see heightened protectionism, impacting supply chains
These shifts could reshape U.S. industries and global markets, influencing investment strategies and causing a wider dispersion in performance across sectors
UK's Fiscal Gamble
The UK government’s £40 billion tax increase, announced in the Autumn Budget on last October 30, is the largest since 1993 and includes abolishing the Resident Non-Domiciled (RND) tax regime.
- The RND regime will be replaced with a stricter, residence-based system starting April 2025, targeting wealthy expatriates and potentially affecting high-end investment and spending in the UK
- Deflation concerns loom large, with a third of consumer goods experiencing price declines. With tax hikes risking to threaten disposable income and slowing business investments
- The critical question remains: will these measures effectively reignite economic growth, or will they deepen caution among consumers and investors?
The Power of Compounding
Compounding ensures wealth growth by reinvesting returns over time, providing long-term growth.
- Exponential Growth Over Time: capitalization products allow for additional earnings, fostering powerful growth from small initial investments
- Wealth Across Generations: a sustainable path to generational wealth, allowing investors to grow assets sustainably without frequent operations
- Resilient Portfolio: compounding rewards patience, making it an ideal strategy for stability and growth through economic cycles
This isn’t just a financial principle – it’s a cornerstone of wealth-building: for those with a long term vision, it creates a legacy that stands the test of time, empowering future generations.
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The analyses and forecasts contained in this publication are based on assumptions, estimates and hypothetical models which may prove to be incorrect and therefore lead to substantially different results.