the global view: The "Trump Trade" 16.07.24

Steve Sosnick from Interactive Brokers reflects on the recent political events influencing the market, including assassination attempts and conventions. He shares his contacts' views that the influence of these events, also known as the 'Trump effect', may dwindle over time, and pinpoints the controversial rhetoric that seems to be dividing the US. As a result, sentiments of sympathy and relief for the attempted assassination vary in their influence on the market. Sosnick also notes a bullish trend in the market, which could be due to optimistic investor sentiment rather than these political events.
He delves into the condition of the banking sector and identifies that these institutions seem to be performing satisfactorily. However, he expresses his concern about stock reactions, particularly those of JP Morgan, Wells Fargo, and Goldman Sachs. Sosnick suggests they may be affected by market trading gains that investors often overlook. He further discusses his worries about the airline sector, reflecting on the lacklustre reception of Delta Airline's company reports.
Lastly, Sosnick expresses his doubts about the health of the wealth disparity, pointing out the potential inflationary impact on low-income households. He indicates that these economic stresses could eventually lead to a tightening of consumer spending. He concludes by emphasising the significance of earnings season on the market's trajectory, highlighting caution about potential negative influences if large stocks fail due to weak consumer health.
Join 90,000 investors who use ausbiz for investing ideas and opportunities. Get the full experience live, on-demand and free at ausbiz.com.au/. When you subscribe you can tailor your content to your interests - by company, expert, topic and series.
Subscribe to our newsletter: company.ausbiz...
Twitter: / ausbiztv
Facebook: / ausbiztv
#ausbiz #finance #investing #globalview

[@WishBlessing]

Thanks