Investec Sees Trump Presidency Akin to Brexit in Markets

The transcript discusses market strategies and expectations ahead of the US presidential election, focusing on potential outcomes of a Clinton or Trump presidency. It highlights cautious market positioning, hedging strategies, and the impact on bond markets and currencies. The discussion also covers the implications of a Clinton win on the Federal Reserve's actions and the broader economic outlook, including global growth and inflation trends.

What is the expected market reaction if Trump is elected as President?

• A risk-on reaction benefiting equities

• A risk-off reaction benefiting fixed income markets

• A neutral reaction with no significant market changes

• An increase in Treasury yields

Which markets are preferred for exposure instead of Treasurys in anticipation of the election?

• Asian markets

• European markets

• Emerging markets

• Latin American markets

How has the speaker hedged against the potential risks of a Trump presidency?

• Investing in real estate

• Selling equity futures and shorting Asian currencies

• Purchasing gold

• Buying US equities

What is the anticipated focus of the Federal Reserve if Clinton wins the presidency?

• Evaluating external events before deciding on rate hikes

• Maintaining current interest rates indefinitely

• Increasing interest rates immediately

• Reducing interest rates to stimulate growth

What trend is observed in global growth according to the speaker?

• Global growth is decelerating

• Global growth is stagnant

• Global growth is accelerating and synchronized

• Global growth is only increasing in the US