In a twist that feels straight out of a political drama, digital wealth management platform Finnomena is urging investors to consider the US, India, and Vietnam as prime havens for wealth growth under the economic shake-up expected from Donald Trump’s second term. Jessada Sookdhis, Finnomena’s chief executive, says this “Trump 2.0” era might just be the big break US small- and medium-sized businesses in banking, energy, and industry have been waiting for. With Trump’s trademark cocktail of hefty import tariffs and corporate tax reductions, sectors that have long been overlooked are now poised for growth – or so Finnomena suggests. Investors, buckle up for the ride.
As if in response to these proposed policies, investment recommendations are shifting fast. Stocks in certain industries – the ones less dazzled by Wall Street’s glitz – are now center stage for Finnomena’s clients. Wasin Parithan, managing director of Finnomena’s subsidiary Definit Investment Advisory, says that if Trump’s tariffs push China’s manufacturers to relocate, India and Vietnam stand to reap the benefits. Vietnam’s ascent to an emerging market status could make it the next big thing in manufacturing, a shift that would add depth to its economic landscape.
The forecast, however, isn’t without some dark clouds. Trump’s plan for a tariff hike on Chinese imports and other global goods could upend trade balances and intensify the “China Plus One” strategy, prompting production to inch even closer to US shores. Some economists fear that this hefty dose of tariffs might chip away at China’s GDP, with global ripple effects to follow. Thailand, for instance, may soon find itself playing a high-stakes game of trade balance, caught between adapting to incoming Chinese products and welcoming US-bound exports.
Meanwhile, Trump’s foreign policy stance has its own unique hue – reportedly, the man who didn’t start a war in his first term aims to keep things as they are. Arm Tungnirun of Chulalongkorn University argues that Trump’s geopolitical approach could mean a thaw in tensions across flashpoints like the South China Sea and the Taiwan Strait. The question on everyone’s mind: will Trump’s trade tactics propel the US economy, or set it on a collision course with its own ambitions? One thing’s certain – Trump’s second act promises anything but business as usual.
(Source: Bangkok Post)
