Donald Trump’s recent return to the White House has reignited interest in the U.S. stock market, which has climbed 2% in a week, supported by the country's economic resilience and its leading position in technology. Analysts believe that Trump’s proposed fiscal policies may further stimulate growth, particularly benefiting small and mid-cap companies. Conversely, while the dominant tech firms known as the Magnificent Seven have surged, concerns arise regarding their excessive valuations. Additionally, traditional energy sectors, particularly oil and gas, are highlighted as potentially lucrative investments following policy shifts.
The ongoing market boom is connected to Donald Trump's return, with U.S. stock market rising 2% since last Monday as the economy shows stronger-than-expected growth.
Fernandez highlights that small and mid-cap companies—those that generate 75% of their profits domestically—are likely to benefit from Trump's agenda.
While the Magnificent Seven have seen dramatic growth, Fernandez warns that their 600% growth is unsustainable, indicating potential market corrections.
Analysts predict that traditional energy sectors, particularly oil and gas, could see further upside through 2024 post U.S. withdrawal from the Paris Agreement.
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