Investment Strategies Amid US Politics and Economic Policies - Business

Impacts of US Politics on Investors

 For investors , the next few months are likely to be anything but ordinary - which is where this wire comes in . Amid these seismic shifts , the Federal Reserve is also contemplating its next move - including a scenario that could see inflationary pressures tread higher if Trump were to be re - elected for a second term.

Investors are closely watching the intersection of US politics and central bank moves , which is increasingly nothing short of a high - stakes drama . Mitchell agrees that Trump is likely to win in November , and believes that investors can bet on more corporate tax cuts , as well as increased mergers and acquisitions . Joye believes a Trump win could spell rates staying higher for longer and more volatility in markets , impacting investor portfolios significantly.

Geopolitical Risks and Economic Policies

 He also points to the ongoing decoupling of China and the US as a continued geopolitical risk . " Number two , you are going to get a much more liberal regulatory environment and you 'll have a lot more M&A take place , " Mitchell explained.

The US and China are both realigning their economic policies to play to their strengths . China is engaging more with the emerging world and on - shoring parts of its supply chain , while the US is trying to bring back sensitive parts of its supply chain from Taiwan . The potential regime shift in economic policy with a Trump win could have far - reaching implications for global markets.

Challenges in Real Estate and Infrastructure

 Affordable social housing remains a massive challenge - as does the country 's need for updated infrastructure and amenities . And it all comes at a time when construction costs and labour shortages remain sky - high.

Parsons highlights the mismatch in planning infrastructure between state , local , and federal governments , not unique to Australia . Housing issues are prevalent in major cities worldwide , and real estate challenges persist . The commercial property sector is experiencing an " Armageddon " , with frozen funds and illiquidity issues impacting investors.

Investment Opportunities in the US

Mitchell 's highest conviction idea is investing in Capital One Financial , a credit card company in the US . The company 's recent acquisition of Discover could lead to multiple ways of winning and a double - digit dividend and buyback yield . Parsons sees opportunities in data centers , healthcare , and retail , noting the quiet recovery of retail and the growing demand for seniors ' housing accommodation . Joye emphasizes the importance of making short - term educated bets in a time of uncertainty and volatility in the market.