Did Trump Cause the Market Volatility?

It's official. He’s back in power as the president.

9/22/20242 min read

I voted #USelections2020
I voted #USelections2020

Buckle up, because the stock market has been on a wild ride this September, and guess who’s making waves again? Yep, Donald Trump is back in the White House! With his re-election comes a fresh round of economic policies, big promises, and—of course—market jitters. If you've been watching the markets and feeling like you're on a rollercoaster, you’re not alone. Investors are reacting to a mix of excitement, uncertainty, and good old-fashioned speculation. Let’s break it all down!

First, let’s talk deregulation—Trump’s favorite buzzword. His administration has wasted no time rolling out new policies aimed at slashing regulations, with an ambitious rule to cut ten old regulations for every new one introduced. Sounds great for businesses, right? Well, yes and no. Sectors like finance, energy, and manufacturing are loving it, leading to some short-term rallies. But on the flip side, sudden policy shifts create uncertainty, and markets hate uncertainty. Investors are trying to figure out whether this deregulation frenzy will truly boost long-term economic growth or just lead to another bubble. Meanwhile, Singapore’s market is feeling the ripple effects, with increased volatility and investors scrambling to adjust their strategies.

Then there’s the trade war drama. If you thought the tariff wars were over, think again! Trump is back with a fresh round of import tariffs, targeting goods from China, Mexico, and Canada. This has investors biting their nails, worried about potential inflation spikes and slower economic growth. Case in point: a 10% tariff on Canadian energy imports means higher prices for American consumers. That, in turn, affects global markets, including Singapore’s, where supply chains and trade relations are deeply intertwined. With businesses reassessing costs and profits, the stock market is feeling the heat, reacting to every trade announcement like it’s the latest plot twist in a thriller.

So, what does this mean for you? If you’re invested in the market, now’s the time to stay cool and think long-term. Market swings are part of the game, and seasoned investors know that uncertainty often brings opportunity. If you’re worried, take a step back, review your portfolio, and make sure you’re not overexposed to high-risk sectors. Whether Trump’s policies will fuel another market boom or bring more chaos is still up for debate, but one thing’s for sure—it’s going to be an interesting ride. Keep your eyes on the trends, stay informed, and if you need guidance, well, you know who to call!