Trump Win: Forget the Noise, Invest in Fundamentals

In a world where news cycles shift in a blink, the prospect of Donald Trump returning to the U.S. presidency brings both speculation and concern for investors worldwide.

How might his policies affect Australian investors?

Our founder, Rich, dives deep into the potential impact of a new U.S. administration's agenda, from corporate tax cuts to rising tariffs, and what it means for key ASX stocks across sectors like consumer goods and renewable energy.

Join us for Rich’s insights on inflation, market rotations, and where contrarian investors should focus in this changing environment.

Trump win: Our message is "Keep calm and carry on!".

.Today’s topic is one of the most anticipated events in global finance: the potential Trump presidency and what it could mean for Australian investors.
As we say here, the key message is simple: Keep Calm and Carry On!

Markets thrive on certainty, and Trump’s return could reinforce just that – but with a twist."

Here’s a breakdown of what to expect, from corporate tax cuts to an ‘America First’ policy and its ripple effects on the ASX.

What Trump's Policy Agenda Means for Australian Investors

The anticipated policy changes bring mixed blessings. Business loves certainty, and it seems U.S. voters have endorsed a continuation of Trump’s policies, which focus on several key areas:

• Corporate Taxes: Trump’s administration proposes reducing corporate tax from 21% to 14%, which would boost U.S.-based companies' profitability. However, this could create competitive pressures for Australian companies, especially those relying on U.S. exports.
  

• Tariffs on Imports: With potential universal tariffs of 10-20% on imports and a staggering 60% on Chinese goods, exporting to the U.S. will become tougher for some Australian companies. Tariffs are not taxes, but they impact costs, especially for companies like Treasury Wine Estates (TWE), Gale Pacific (GAP), and ARB Corp (ARB) that rely on export markets. For Austal (ASB), a key supplier to the U.S. Navy, this shift could have mixed effects.
  

• Renewable Energy Shift: Renewable stocks in the U.S. have already seen declines due to Trump’s anti-green policies. However, Australian utilities like AGL (AGL) and Origin (ORG) are diversified enough to withstand such pressures. For ASX investors, this means focusing on companies with diversified energy portfolios rather than pure-play renewables.

Inflation, Market Movements, and Staying Calm

Trump’s policies have fueled inflation expectations, with the U.S. 10-year Treasury yield rising slightly but still under control. Market reactions like these echo past shifts, similar to the resource-driven rally after China’s stimulus.

But remember, time tempers such market swings, and inflation remains in check globally, offering a sense of stability.

Contrary to panic-driven market moves, fundamentals remain unchanged. Companies’ balance sheets, cash flows, and core operations haven’t shifted, even as the external environment changes.

That’s where Under the Radar Report thrives – in evaluating company fundamentals to spot undervalued opportunities, like Lynas RE (LYC), which has recently seen recovery due to improved production and pricing.

Contrarian Opportunities: Where to Focus Now

At Under the Radar Report, we see value in contrarian plays, especially in underappreciated commodities producers.

Lynas Rare Earths ($LYC) is a prime example, having struggled with production but showing signs of rebound. And while some stocks face short-term setbacks, we assess them through rigorous analysis rather than panic.

Take Mach7 Technologies ($M7T) – despite a poor quarter, the company’s solid cash reserves and near-breakeven point support its recovery potential.

Patience Pays Off for Individual Investors

A major advantage for individual investors is the ability to stay patient and look past short-term volatility. Some of our best recommendations, like Macquarie Technology (MAQ), Codan (CDA), and Neuren Pharma (NEU), have rewarded patient investors even if they didn’t start strong. While we can’t guarantee perfect timing, we ensure comprehensive analysis to cover both the risks and opportunities.

Final Thoughts: Focus on Fundamentals

Markets may react swiftly to a Trump win, but the fundamentals of the companies we recommend remain solid. When panic sets in, investors risk locking in bad decisions. With Under the Radar Report, you can focus on research-driven, long-term strategies that see you through uncertain times.

Stay tuned as we bring you new stock opportunities, with special insights on critical minerals and their investment potential. Remember: keep calm, focus on value, and let’s navigate these shifts together.