'Still positive momentum in US growth stocks'
Interesting are Palantir Tech, Qualcomm (cheaper than Nvidia) and Illumina, which exploits artificial intelligence as well as Symbotic
3' min read
Key points
3' min read
The Fed will continue its policy on interest rates and it is still too early to really assess the effect on the stock markets. This will be seen in the coming months. In the meantime, growth stocks continue to be attractive. This is the starting point for Mobeen Tahir, director macroeconomics and Thematic research at WisdomTree.
What do you think of the scenario in the markets in the aftermath of the US elections?
There are few outcomes on the markets that can be fully priced in, especially the outcome of the US presidential election. This is confirmed by the strong reaction of the markets after the announcement of the election outcome. Volatility dropped, suggesting that equity markets found reassurance in the quick announcement of the election winner. In addition, the 'Trump effect' is also at play. Markets see corporate tax cuts, deregulation and protectionist policies as positive for US companies. Although these policies, together with immigration restrictions, could lead to higher inflation, there seems to be no concern about this risk in the short term.
And what will be the repercussions for European and emerging markets?
So far positive, thanks to the correlation effect, whereby stock markets around the world tend to rise with positive risk sentiment towards US stocks.
Until when?
.In the coming months, investors may become more cautious as the impact of Trump's trade policies on European and emerging market companies becomes clearer. For example, China has announced fiscal stimulus, but is probably conserving resources to respond to any further Trump tariffs. Europe will also have to develop a new trade strategy.
Could the Fed's monetary policy change?
In 2025 we could see relative harmony between the White House and the Fed, as many of Trump's inflationary policies are unlikely to have a full impact on inflation as early as next year. This could allow the Fed to proceed with planned rate cuts, aligning with market expectations. However, 2026 may present a different scenario.
