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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/trumps-return-to-the-white-house-set-to-transform-financial-markets-experts-warn/
As Donald Trump secures a second term in the White House, financial markets are bracing for a series of sweeping changes that could reshape the global economic landscape.
Investors are preparing for heightened volatility and potential disruptions, with the re-elected president’s economic agenda promising significant shifts in trade policy, regulation, and defense spending.
Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory firms, has highlighted several key areas where Trump’s return to office is likely to have an immediate and lasting impact. According to Green, the president’s plans to impose protectionist tariffs, roll back regulations, and boost defense spending will create a dynamic and unpredictable environment for investors.
One of the first major actions likely to be taken by the Trump administration is a focus on protectionist tariffs. Green expects the president to impose tariffs of up to 25% on goods from key trading partners such as China, Canada, and Mexico. These measures are expected to disrupt global supply chains and drive inflationary pressures, which could have far-reaching consequences for the economy.
“The inflationary impact of these tariffs could push consumer prices higher, potentially forcing the Federal Reserve to reconsider its current rate path,” Green warns. The anticipated surge in tariffs may also cause currency fluctuations, with the U.S. dollar strengthening initially but facing potential depreciation as inflationary concerns build.
In addition to these trade measures, Trump is expected to prioritize deregulation across multiple sectors, particularly in financial services, energy, and cryptocurrency markets. Green predicts that the rollback of regulations imposed during President Biden’s tenure will create new opportunities for businesses, especially those in industries that have been stifled by government oversight. Financial firms, in particular, stand to benefit, with banking stocks already rallying since Trump’s re-election. Energy companies and digital assets like Bitcoin may also see growth as deregulation boosts market confidence.
Another significant aspect of Trump’s economic agenda is his focus on defense spending. Green believes that an increase in defense budgets will create opportunities in sectors such as aerospace, cybersecurity, and logistics. However, this surge in government spending could also crowd out private investments in other industries, potentially diverting capital away from sectors that had been thriving under different economic conditions.
Amid these changes, investors may seek refuge in traditional safe-haven assets like gold. Green suggests that the combination of tariffs, inflation, and fiscal stimulus will likely lead to rising demand for precious metals. As global tensions increase, particularly with China pivoting toward gold and away from the U.S. dollar, the price of gold could reach new highs.
For investors, the road ahead looks uncertain. The next six months will be marked by the interplay of protectionist policies, deregulation, and inflationary pressures, creating both challenges and opportunities. Green advises investors to prepare for a rapidly changing environment, urging them to diversify their portfolios and focus on inflation-resistant assets.
“The best course of action for investors right now is to seek tailored advice and adjust their strategies to account for the new economic reality under Trump’s leadership,” Green concludes. As the president moves forward with his agenda, markets will undoubtedly be reshaped, and those able to navigate the uncertainty may find themselves in a stronger position as the U.S. economy evolves.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/trumps-return-to-the-white-house-set-to-transform-financial-markets-experts-warn/
