2024 US Election
11/18/24 • 25 min
In this episode of "Wealth and Toil," Luke Laretive and Dylan Pargiter-Green discuss the upcoming U.S. election.
Market Impact of Elections
Markets often experience short-term volatility, then generally adapt quickly to election outcomes. Individual policies may cause initial market reactions, but broader economic forces and market fundamentals have a more sustained impact on financial markets.
Tariffs
Potential tariff policies by Trump, described as protectionist measures aimed at boosting domestic employment by imposing penalties on foreign goods. Luke and Dylan debate the inflationary impact of such tariffs, suggesting that while they may protect certain jobs, they also increase manufacturing costs, which can lead to higher consumer prices.
Fiscal Policies and Corporate Tax Cuts
Trump's proposals for corporate tax cuts are likely inflationary in the current economic context. Tax cuts might benefit shareholders in the short term through increased dividends and buybacks but could exacerbate economic inequality by further enriching the wealthy.
Energy Policies and Environmental Impacts
Contrasting the energy policies of Trump and Harris, with Trump favouring fossil fuels and Harris advocating for a push towards green energy. Harris's focus could benefit sectors tied to renewable resources, which might positively affect investments related to clean energy technologies.
Market Performance of Republican Presidents vs Democrat Presidents
Causal?
General Advice Warning: This podcast is intended and contains general information on financial strategies, investments, and products only. Whilst Luke and Dylan are both licenced Financial Advisors, we don’t know your personal circumstances, goals or objectives. We highly recommend that you reach out to your Financial Advisor or investment professional to discuss any of the topics we have covered today before taking action.
Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:
Hosted on Acast. See acast.com/privacy for more information.
In this episode of "Wealth and Toil," Luke Laretive and Dylan Pargiter-Green discuss the upcoming U.S. election.
Market Impact of Elections
Markets often experience short-term volatility, then generally adapt quickly to election outcomes. Individual policies may cause initial market reactions, but broader economic forces and market fundamentals have a more sustained impact on financial markets.
Tariffs
Potential tariff policies by Trump, described as protectionist measures aimed at boosting domestic employment by imposing penalties on foreign goods. Luke and Dylan debate the inflationary impact of such tariffs, suggesting that while they may protect certain jobs, they also increase manufacturing costs, which can lead to higher consumer prices.
Fiscal Policies and Corporate Tax Cuts
Trump's proposals for corporate tax cuts are likely inflationary in the current economic context. Tax cuts might benefit shareholders in the short term through increased dividends and buybacks but could exacerbate economic inequality by further enriching the wealthy.
Energy Policies and Environmental Impacts
Contrasting the energy policies of Trump and Harris, with Trump favouring fossil fuels and Harris advocating for a push towards green energy. Harris's focus could benefit sectors tied to renewable resources, which might positively affect investments related to clean energy technologies.
Market Performance of Republican Presidents vs Democrat Presidents
Causal?
General Advice Warning: This podcast is intended and contains general information on financial strategies, investments, and products only. Whilst Luke and Dylan are both licenced Financial Advisors, we don’t know your personal circumstances, goals or objectives. We highly recommend that you reach out to your Financial Advisor or investment professional to discuss any of the topics we have covered today before taking action.
Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:
Hosted on Acast. See acast.com/privacy for more information.
Previous Episode
Small Caps, Mining in The Pilbara, Property Markets
In this episode of "Wealth and Toil," Luke Laretive and Dylan Pargiter-Green recent performance of Seneca's small cap fund, Luke's visit to Pilbara Minerals, Wildcat Resources and Port Hedland, and recent property market craziness in Perth
Discussion on Small-Cap Investments
Luke shares insights from his trip to WA, focusing on small-cap investment opportunities in the Pilbara region.
The performance of Seneca's small-cap fund, which has returned 28.4% over the past year, outperforming the benchmark by 9.6%.
The importance of considering different asset classes for generating alpha and the unpredictable nature of investing based on past performance.
Market Trends and Investment Strategies
Broader market trends, performance challenges with large-cap strategies versus the unnoticed opportunities in small-cap sectors.
The importance of manager selection, rolling returns and maintaining a long-term perspective.
Educational Aspect and Managerial Advice
Luke stresses educating investors about looking beyond recent performance and focusing on the potential over the next decade.
The importance of clear communication and transparency from fund managers is highlighted, illustrating how these qualities can build confidence among advisers and investors.
Luke's recent visit to Western Australia;
Site visit to Pilbara Minerals ASX:PLS
Wildcat Resources ASX:WC8 - possible takeover from Mineral Resources?
Utah Port in Port Hedland
Perth property market going nuts? Dylan's analysis
Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:
Hosted on Acast. See acast.com/privacy for more information.
Next Episode
Spicy Small Caps
In this episode of "Wealth and Toil," Luke Laretive and Dylan Pargiter-Green are joined by guest Ben Richards discussing Australian small-caps:
The Small Cap Opportunity:
The potential for outperformance in a market that is relatively stable but top-heavy. Australian small caps provide a clear opportunity for growth.
Active Management Versus Passive Investing:
Active strategies are particularly beneficial in this segment because small caps require detailed analysis and selection to identify growth opportunities, which is not typically achievable with passive index tracking.
Portfolio Strategy and Construction:
The Seneca Small Cap Fund holds a diversified portfolio of 20 to 50 companies, focusing on quality businesses with reasonable growth prospects and pricing.
Fundamental focus on a stable process that cannot be replicated by home investors.
Market Dynamics and Valuation:
The challenges of investing in top-heavy indices that are skewed towards large-cap stocks, which may not offer the best growth opportunities. They argue that small-cap stocks are undervalued relative to their growth potential.
Long-Term Investment Perspective:
The importance of long-term investing with a focus on companies that have sustainable growth drivers. A patient investment approach tolerates volatility for superior long-term returns.
General Advice Warning: This podcast is intended and contains general information on financial strategies, investments, and products only. Whilst Luke and Dylan are both licenced Financial Advisors, we don’t know your personal circumstances, goals or objectives. We highly recommend that you reach out to your Financial Advisor or investment professional to discuss any of the topics we have covered today before taking action.
Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:
Hosted on Acast. See acast.com/privacy for more information.
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