Jaffe’s forecast follows Donald Trump’s historic return to office and reports that the Republicans have won a majority in the House of Representatives, taking full control of Congress (Bloomberg).
Trump’s second term and concentrated power will undoubtedly have profound implications on global financial markets and economies, as his unpredictable nature, coupled with his ideologically aligned cabinet, is set to dominate US foreign policy (Financial Times).
BCA Research is a leading provider of macroeconomic and investment research, providing best-in-class macro insight for investors and corporates across the globe. Since its establishment in 1949, BCA has scaled to cover all major asset classes, leveraging 75 years of proprietary data to deliver detailed research and intelligent insights to its clients.
At BCA Research, Jaffe has seen first-hand how investors are actively reconsidering their strategies following the election. Before November 5th, a third of US businesses put their plans on ice, waiting to see who would be victorious (CNN), but now, Jaffe believes the uncertainty will only escalate.
Considering the incoming President’s known unpredictability, Jaffe believes Trump’s victory will only push more investors to engage with research providers. Trump’s policies will send reverberations throughout corporates, with global trade, geopolitical relations, international oil and gas markets, US fiscal policy and the labor market all set to be affected during his term (Reuters), ultimately forcing businesses to reassess their global operations.
As investors look to navigate this uncertainty and see around corners, Jaffe already sees the importance of systematic, framework-driven research increasing. For him, a surge in the demand for research is already underway – providers must be prepared.
Eric Jaffe, CEO of BCA Research, said: “Trump is about to take on more power than ever, and global economic stability is set to take a severe knock. With profound implications for global trade, the US labor market, fiscal policy, and foreign policy, investors will undoubtedly be searching for an antidote to the chaos.
“Some put plans on hold before the election, waiting to see who would step into the White House, but now, the turbulence is only just getting underway. We’re at a critical juncture; with tensions rising and geopolitical relations continuing to fragment, Trump’s victory will likely push global cohesion to breaking point. There will be colossal ramifications for investors who must try to gain a foothold.
“They’ll inevitably look for answers, and I firmly believe investors will increasingly turn to research providers to help navigate the turmoil. We’re about to see a significant spike in the global demand for research; specialists like ourselves must prepare for this surge.”
