News analysis Will 'Trumponomics' prolong or curtail the 'Roaring 20s'?

On many counts, this decade is shaping up to be another "Roaring 20s" for major markets around the world.

- Tan Min Lan

Much like the "Jazz Age," a century ago, the past few years have been characterized by rapid growth, technological breakthroughs and high market returns, led largely by the US.

The same has continued in 2024 as growth exceeded expectations, central banks began easing policy amid moderating inflation and transformational technologies like artificial intelligence (AI) made further unprecedented strides.

Across assets, investment-grade bonds rose 3.5 per cent while equities – up more than 20 per cent – and gold – up by 27.7 per cent – delivered exceptional gains, resulting in a second straight year of strong returns for a global 60/40 portfolio (up 11 per cent).

With the 2020s at the halfway mark, what might the next stage bring? For global investors, the year ahead and beyond will hinge on the incoming Trump administration and whether its priorities and policies prolong or curtail these "Roaring 20s".

AMERICA FIRST

Backed by a Republican Congress and surrounded by loyalists, Donald Trump is set to reshape the global economic and geopolitical landscape even more decisively as the 47th US president than he did as the 45th.

While his exact policies are pending, his early appointments attest to his topmost priorities: America first, a hard line on China and an eagerness for disruption.

To push through this agenda, Trump is quickly filling his administration with long-time allies, vocal China hawks including Secretary of State nominee Marco Rubio and National Security Adviser pick Mike Waltz – and avid disruptors like entrepreneur Elon Musk.

In a nod that he will continue viewing the market as a barometer of success, the President-elect has also turned to pragmatic picks like hedge fund executive Scott Bessent to head the Treasury.