The post-election frenzy, which saw markets soar for several days, setting historic records almost every day – on Monday, the S&P 500 ended above 6,000 for the first time in its history – is slowly subsiding. Over the past week, about a third of the gains made in the euphoria after the election results were announced have already been lost. From fairy tales and victory celebrations, we need to move on to solving real problems, of which there are many in the world, and not all of which can be solved simply and effectively, as alpha presidents like to do. This is a quick review from Ivan Kompan, Edinburgh Business School analyst.
The newly elected leader quickly formed part of his administration, appointing Gaetz, Hubbard, Hegseth, and Kennedy to key positions. Musk and Ramaswamy will head the Department of State Efficiency, while Rubio is set to become Secretary of State. Not all these names are widely recognized, but “simple and effective” decisions often resonate with the masses.
Trump announced there’s no place in his administration for Jamie Dimon, head of JP Morgan, to which Dimon responded, “I’ve worked without a boss for 25 years and don’t plan to start now.” Another target of rejection is Jerome Powell, Chair of the Federal Reserve. Powell intends to stay in office and continue his cautious monetary policy despite pressure from the new administration. His remarks about maintaining high rates led to market drops and an increased likelihood of unchanged rates until year-end, rising to 38%.
High rates complicate funding the national debt, which has reached $36 trillion. Trump’s deregulation program still fuels market optimism: GDP grows, inflation eases, and companies remain profitable. Analyst Ed Yardeni predicts significant growth for the S&P 500, possibly reaching 10,000 by the end of the decade. The market is already showing “animal spirits,” leaving room to unleash them fully.
*And finally, we would like to remind you that the information you have just listened to is not an investment advisory. Remember – investments in the stock market are always tied up with financial risks. So be careful and cautious.
