CAISSA analyzes global events monthly, assessing their potential influence on our client’s wealth plan. We are diligently having strategic discussions with our portfolio managers, ensuring that our position remains informed and aligned with current market dynamics.

Below, you will find CAISSA’s perspective on these global events.

The Post-Election Surge Continues

The U.S. financial markets have experienced a significant “post-election surge,” driven by optimism about economic policies and regulatory changes expected under the new administration. 

CAISSA Perspective: Major stock indices, such as the S&P 500 and Nasdaq, have hit record highs, buoyed by strong performances in growth sectors like technology and consumer discretionary. Tesla has been a standout, continuing its rally amid positive sentiment around clean energy initiatives and autonomous vehicle policies. Bitcoin has also surged over the $100,000 mark as investors anticipate a favorable policy environment that could bolster institutional adoption and regulatory clarity in the cryptocurrency space. This broad-based rally underscores renewed investor confidence, though we continue to be cautious as valuations are stretched and the market is pricing for perfection. 

Geopolitical Tensions Remain 

Political instability has intensified, with South Korea’s imposition of martial law, the fall of Assad’s regime in Syria, and France’s government ousted via a no-confidence vote.  

CAISSA Perspective: Geopolitical risks create headwinds for international equities, but valuations remain attractive. We recommend a cautious approach until there is greater clarity on how these developments will impact global trade, defense spending, and investor sentiment. With President Trump’s upcoming inauguration, we will monitor potential shifts in U.S. foreign policy and their implications for global markets. 

Renewed Inflation Concerns 

The post-election economic environment has sparked renewed fears of inflation, as bond yields have risen sharply amid uncertainty over the trajectory of tariffs.

CAISSA Perspective: Tariffs have the potential to disrupt supply chains, elevate input costs, and create upward pressure on prices. However, their ultimate impact depends on whether they are broadly implemented or used strategically as a negotiation tool. If tariffs remain limited, we anticipate inflationary pressures to be temporary. Conversely, widespread tariffs could exacerbate stagflation risks, particularly if higher costs coincide with slower economic growth. As policymakers clarify their stance, we are actively monitoring inflation-sensitive asset classes that historically perform well in inflationary environments.