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Ahmed Kamal, chief investment officer at Azimut Asset Management Egypt, said the performance of US equities was unexpected.
He added in his address to Al-Arabiya, that at the end of October, Biden was expected to win the presidency alongside congressional control, and the markets were adopting this scenario, until see you yesterday when it became clear that there was competition between Biden and Trump, as well as the Democrats’ tendency to control the Senate.
He stressed that it seems markets are trying to find justifications for the increase, especially given the low rate environment, which the US Federal Reserve is expected to maintain for a long time.
He said that under the scenario in which Biden could win the election, with Republicans controlling the Senate, the stimulus package will not be as big as what Biden has promised, but investors expect, under that scenario, to that the US Federal Reserve intervenes by reducing interest rates, and therefore the stimulus will be financial and monetary. .
He pointed out that while a delay in handing over power is a possibility, investor thinking is still positive.
He pointed out that the markets would see a violent wave of correction if Trump turned to the Constitutional Court regarding the elections.
As for the impact of this scenario on regional markets, Kamal said the Federal Reserve’s intervention by lowering interest rates could encourage the Bank of Egypt to continue lowering interest rates.
In the Arab markets, the lull in the trade war will positively affect all emerging markets, including the Arab markets.
He indicated that the downside would be oil.
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