Trending On Livewire: Weekend Edition - Saturday 9th November

Last week we discussed the importance of a certain election outcome with a clear result. Well, the outcome was nothing if not certain, and a mighty Trump bump ensued. But it was a tale of two cities, with the Dow in the US surging almost 1500 points post the election for its best session in years, whilst the ASX 200 stumbled around listlessly in the aftermath, limping to a paltry 25-point gain by the close. Why the difference? Well, obviously we are not America so any impact – large or small – was likely to be more muted locally, but it also didn’t take long for the negative commentary about what Trump’s potential policies might do to the Australian economy to appear. There’s a lot of ‘maybes’ in that previous sentence and call me an old-fashioned market hack, but I’ll take certainties over ‘maybes’ any day of the week. Whatever Trump’s policies end up looking like, markets will find a way through – they always have and they always will. 

We’re less than seven weeks out from Christmas, the election is done and the result is clear. Inflation is moving in the right direction, the Fed has already begun easing and the RBA will hopefully follow next year. Company earnings remain solid, we are in a period of favourable seasonality, and the animal spirits are alive and well. The table is set for a Santa Claus rally. Bring it on.

Chris Conway, Managing Editor, Livewire Markets

It's not every day that we can pick the brains of Koda Capital's Brigette Leckie. Leckie, who is the $11.5 billion firm's Chief Economist, has just come back from trips to Europe and the United States. She says the macro environment requires careful consideration for investors. Furthermore, Leckie believes that a solid understanding of the economic picture is crucial to making wise asset allocation decisions. In this episode of the Rules of Investing, you'll find out what Leckie learned in her travels across these key geographies. She will also share her four key messages for investors right now.

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