Why US companies are winning under Trump and Europe can't keep up - financial expert explains

Why US companies are winning under Trump and Europe can't keep up - financial expert explains

According to a report by extraetf.com, US companies will be in an advantageous position if Donald Trump wins the election, while Europe could face more difficult times. Carsten Gerlinger, Managing Director and Head of Asset Management at Moventum AM, emphasizes the strength of the US economy compared to Europe, which has proven to be resilient and flexible in past crises. This is also reflected in the market capitalization of the stock markets, which is significantly higher in the USA than in Europe.

If Donald Trump wins the election, the outlook for Europe could continue to darken. Trump's “America First” policy could lead to a resurgence of trade disputes between the US and Europe. European states would also have to bear higher costs for military support if Trump were to reduce support. This could lead to an outright trade war with Europe.

Investors should position themselves accordingly given these possible developments. US companies are likely to benefit more from robust American foreign and economic policy than European stocks. The strength of the US economy and the freedom to borrow at relatively low interest rates could benefit US companies, while European policymakers are described as lacking ideas and with empty coffers.

Furthermore, gold could also become more attractive in the event of a Trump victory. Paul Jackson, global head of asset allocation research at Invesco, predicts that if Trump wins, gold could rise to more than $2,350, similar to what was seen in 2016.

Overall, these prospects show that if Donald Trump wins the election, US companies are advantageously positioned, while Europe may face more difficult times. Investors should therefore adapt their investment strategy accordingly in order to benefit from potential changes in the market.