In this episode of the Goldman Sachs Exchanges podcast, the panel explores how the markets reacted to Donald Trump's potential 2024 presidential win. They delve into the so-called "Trump trades," which include investments in banks, technology, and energy stocks. Initially, the market saw a quick rally, accompanied by a notable drop in the VIX. However, some sectors, particularly renewable energy, faced unexpected declines. Overall, the mood remains optimistic, though there are lingering worries about inflation and how tariffs might affect global growth. The conversation also highlights asset allocation strategies, recommending a heavier focus on US and Asian equities while suggesting a lighter stance on European assets due to the current economic landscape and policy uncertainties. The panelists predict that the Federal Reserve will likely implement less aggressive rate cuts than previously anticipated.
