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This week on Money and Investing, Mitch Olarenshaw and I break down how Trump’s second presidency is shaping global markets, currencies, and key asset classes, with a focus on what actually matters for investors.

1. Trump Policy and Market Volatility

The return of Trump has triggered rapid policy shifts across trade, energy, and geopolitics. This has increased short term noise in markets, but headline risk has not stopped equities from trading near record highs.

2. Energy, Oil Prices, and Inflation Pressure

US actions around Venezuela and broader energy supply aim to push oil prices lower. Cheaper energy acts like a tax cut for consumers and businesses and helps slow inflation across the economy.

3. Iran and Geopolitical Risk

Tensions in the Middle East continue to add risk premiums to oil prices. Even without direct conflict, the threat alone is enough to move energy markets higher in the short term.

4. NATO, Greenland, and Trade Pressure

Trump’s stance on NATO and Greenland highlights a stronger America first approach. Tariffs and trade threats are used as leverage, creating uncertainty for Europe and global trade relationships.

5. Federal Reserve and Interest Rates

Trump’s criticism of Fed Chair Jerome Powell reflects pressure for lower rates. However, holding rates steady reduces the risk of inflation returning too quickly and supports longer term stability.

6. China, Technology, and Semiconductors

Restrictions on advanced chip exports to China have raised concerns for major tech stocks. These moves are largely negotiation tools, but they increase volatility across the tech sector.

7. US Dollar Outlook

The US dollar has strengthened recently after a softer period. Expectations around slower rate cuts support the currency, even as policymakers prefer a weaker dollar for exports.

8. Equity Markets Near Highs

Despite geopolitical tension, earnings remain strong. Valuations are high, so upcoming results need to meet expectations. This environment rewards selectivity rather than broad optimism.

9. Bonds and Interest Rate Expectations

Bond yields reflect slower and fewer rate cuts ahead. Markets are adjusting to a higher for longer view on rates, reducing earlier optimism.

10. What Investors Should Focus On

Volatility is likely to stay. Risk management matters more than prediction. Staying disciplined and protecting capital is key when markets price in perfect outcomes.

For more Info about Money and Investing, you can go to the podcast; The Wealth Playbook: Your Ultimate Guide to Financial Security; and The Wealth Playbook by Andrew Baxter – Audiobook, which is on Audible.

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Disclaimer: Wealth Magnet Pty Ltd (ABN 52 618 868 830) trading as Australian Investment Education is a Corporate Authorised Representative (CAR no. 1255231) of Grange Financial Services Pty Ltd (AFSL No. 488609).

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

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