THE TRUMP/MUSK EFFECT

Hi David,

We hate to be flippant but it’s hard to go past “time will tell” – not a comprehensive answer this time. At this stage markets are comfortable with the “dynamic duo” with European, US and Australian markets all trading around all-time highs, which in itself brings with it issues around elevated valuations.

• MM plan to keep our fingers on the pulse in what we believe will be a volatile year with upward bias.

However, looking out to 2026/7 is guesswork at this stage, tariffs could have come and gone but what happens to inflation could be the determining factor in the future direction for equities – let’s hope you’re wrong!

As a side note, the US fiscal situation is not sustainable, debt is too high and this does need to be addressed through efficiencies and productivity, areas they are focussing on. Importantly too, is that we’ve seen many people over the years forecasting doom and gloom as a reason not to invest. History shows, it’s better to simply invest, having an appropriately structured portfolio with correct asset allocation to achieve a specific goal is good returns are achieved over time.