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October Newsletter: ‘Coming Up Trumps’

22 October 2024

If you are not already an expert in US politics, just hang in there—by the end of the month, you will be. The term “swing state” may not mean what you think it does!! But you’ll know by the end of the month it is just a fancy way of saying, “Here’s where we’ll decide the fate of the Western world.” With the Middle East on the verge of something catastrophic and Russia pounding away in Ukraine, you might think we’d have bigger fish to fry. Yet here we are, perched (little pun there) on the edge of our seats, wondering if “Coming Up Trumps” is about to happen again.

It’s not just in geopolitics where Trump raises eyebrows. “I think in terms of leadership, he’s getting an A,” Trump once said of Vladimir Putin “Very strong, very smart.” He also champions tariffs as a way to save factory jobs. But that feels like clinging to the “noble savage” theory—romanticizing something that, while appealing in a bygone era, is now completely out of sync with reality. Yes, manufacturing built nations. But today, the real value lies in services—tech, healthcare, and education—industries that propel the economy forward. Focusing too much on saving manufacturing jobs, as many governments tend to do, isn’t just nostalgic—it’s harmful. Economic success isn’t about saving jobs, it’s about creating new ones, something America has done spectacularly well.

We often think that the Middle East and Ukraine are the crises that will determine the future of markets, the global economy, and possibly even the world itself. But the imposition of tariffs may well have an even larger impact. This again merely underlines that at the heart of it all is always leadership. As the quote goes, “Leadership is not about being in charge. It’s about taking care of those in your charge.” It sums up the dilemma perfectly. Trump’s ” America First ” is placed in stark relief. As leader of the free world, he should care for everyone, not just his followers. His slogan then quietly dismisses the US’s responsibility as a global leader. The rest of the West should take note, the US may soon withdraw from the global stage. A Trump victory may cement this shift, so who then will attempt to solve the very real problems we’re facing?

“Coming up Trumps” no longer carries the positive connotations it once did. But the stakes couldn’t be higher for the sixty-four million Americans in the seven swing states who hold the cards. Their decision will determine the future, not just for the US, but for the world. All we can do is hope they fully grasp the weight of their choice. The outcome could reshape the global landscape for years to come.

God bless America? Or, perhaps more fittingly, please God—let’s hope they get it right. As for markets expect a tense October. The election result will set the tone for what comes next.