06.11.2024
Republican candidate Donald Trump was able to win a second term, and together with this news, we witnessed the interaction of the markets with the announcement of the news of winning the elections, but with the vision of his analysis, he explained how we can imagine the situation of the economy and financial markets during the coming period, as given the economic strategy adopted by Trump, which is to reduce taxes and interest rates and support startups, which may lead to an increase in economic growth and thus will affect the movement of markets, especially the stock market, where it is expected to witness a growth spurt Large during the coming period, based on the vision of the indicators during the previous term period, which was in 2017 and ended in 2021, where looking at the Dow Jones index, we find that the index during this period is a significant growth, as the index rose from the levels of 18,000 points to reach the level of 29,000 points in 2020 and witnessed a growth of nearly 80%, and therefore the market is expected to witness significant growth during the second term, especially with the continued alert of the same previous economic policy.
Looking at the yellow metal, we find that gold grew very strongly, as in 2017 the price of an ounce was $ 1150 until it reached in 2020 the level of $ 2100 per ounce, which is close to 100%, and although the rise of gold at that time was supported by the outbreak of the Corona virus, but due to the policy of weakening the dollar to support the economy, this matter supported the rise of gold to these levels, But in these times, what is happening now is the decline in gold prices as a reaction to Trump's victory, due to the withdrawal of capital from investment from safe assets and its direction to riskier assets represented in stocks.
With the presence of the cryptocurrency market, which grew very significantly during the previous term, as the price of Bitcoin moved from the level of $ 350 in 2017 to the level of $ 27,000 in 2020, which is about a growth of 800%, and therefore expectations are increasing during the coming period, especially after Trump supported the cryptocurrency market and issued a cryptocurrency trading platform during the previous period
Will we see growth spurts in financial markets during this term as in the previous period?