The Future Is Not What It Used to Be
Disclaimer: Your capital is at risk. This is not investment advice.
Since mid-July, equity markets have faced turbulence, particularly in tech stocks like Tesla and Alphabet. Volatility has been further influenced by the U.S. presidential election developments. Following President Biden’s unexpected resignation and Vice President Kamala Harris stepping up, the political landscape is intensifying with Trump and Harris in a tight race.
Despite these developments, our AAA Model broadly maintains the same asset allocations, indicating a market wobble rather than a trend shift; however Japanese and Chinese equities are notably weak. With easing inflation and a rising unemployment rate, investors anticipate potential Fed rate cuts, which have historically preceded stock market losses. Amidst this, gold stands out as a strong performer and reliable hedge against market downturns.
