Hello,

 

We have written about the impact of politics on investment markets many times throughout 2024. Over the weekend, US President Joe Biden announced to the world the shocking news that he would step out of the 2024 Presidential election race. This came as a surprise to many, in what has already been an unprecedented election year.

 

The decision will have implications for major asset classes and currencies as Donald Trump awaits news on who his new opponent will be. Whilst Vice President Kamala Harris appears to be the likely candidate, there remains much uncertainty. Uncertainty has been a familiar theme throughout 2024, and as such we remain flexible in our positioning. As referenced in our Mid-Year Investment Outlook, history remains a useful guide and reference point, but investors, to date, have not taken a clear view on the likely economic impact of a second Trump term. At Zurich, we maintain a flexible outlook and are poised to act from a position of strength. We may act upon buying opportunities within either equities or fixed income, as they present themselves.

 

As always, if you wish to discuss anything in this newsletter in further detail, please do get in touch.