Despite uncertainty from campaign rhetoric, Derwent Investments predicts pragmatic policies from President-elect Trump will drive growth, supported by tax reform, infrastructure investment, and strong corporate earnings.
SINGAPORE, SINGAPORE / ACCESSWIRE / December 16, 2024 / Singapore-based investment and wealth management practitioner, Derwent Investments has reiterated its confidence in the resilience and growth potential of the U.S. economy, despite concerns stemming from President-elect Donald J. Trump's campaign rhetoric. In a scheduled research note to clients, the firm emphasises that Trump's business acumen and instincts will likely guide policies prioritising economic stability and growth.
"Our extensive research suggests that, while the tone of President-elect Trump's rhetoric has sparked uncertainty, his history as a businessman suggests a pragmatic approach to policymaking," said Edward Chandler, Director of Private Equity at Derwent Investments. "In our view, the U.S. economy, supported by strong corporate earnings, innovation and consumer spending, remains on a solid growth trajectory."
The firm's analysis highlights several factors underpinning its optimistic outlook:
Tax reform and deregulation: Trump's proposed corporate tax cuts and deregulation efforts are expected to bolster profitability for U.S. businesses while stimulating investment.
Infrastructure spending: Trump's focus on infrastructure development could provide a significant boost to employment and economic activity.
Trade policies: While Mr Trump's fiery protectionist rhetoric has aroused concern, the administration's negotiation strategies are likely to aim for balanced agreements that support American industries without disrupting global trade dynamics.
"Investors should remain focused on the fundamentals," added Mr. Chandler. "The U.S. economy's size, diversification and innovation-driven industries position it to weather policy shifts and emerge stronger."
Derwent Investments' note encouraged clients to stay the course, reiterating that a long-term investment perspective is crucial during periods of political transition. The firm's portfolios are strategically diversified to capitalise on opportunities across sectors poised for growth under the new administration, such as technology, manufacturing, and energy.
About Derwent Investments
Derwent Investments is a leading investment management firm committed to delivering superior investment results and second-to-none client service. With a team of experienced professionals and a disciplined, research-led approach to investing, the firm provides innovative solutions and opportunities for medium-to-long-term capital growth. Derwent Investments' focus on research-driven investment strategies ensures that clients benefit from the latest market insights and technological advancements.
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SOURCE: Derwent Investments Pte Ltd
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