• Another Trump term could be positive for the financial sector as we expect an extension of his 2017 Tax Cuts and Jobs Act. Tax savings in 2018 and 2019 for large banks made up 12-15% of their full-year net income in those two years.
• Biden plans to strengthen financial regulations and reinstate financial reforms rollbacked by Trump. We believe this will have a greater impact on the smaller regional banks.
  
• For positioning on a Biden win, we favour accumulating large U.S. banks on weakness, considering their attractive risk-to-reward proposition and that any further oversight may affect them less. On the other hand, Trump’s extension of his tax-cut policy will likely favour the overall sector and his deregulatory stance may make smaller banks attractive.
  
• Below is a list of sector ETFs which investors may look out for. 

Alibaba’s payments arm, Ant Group/Financial has filed for IPO in both Hong Kong and Shanghai to issue at least 10% in new shares of its total capital. It is likely to be the largest in global financial history. Over 1.3 billion users worldwide The predecessor of the Ant Group is Ant Financial and its flagship product Alipay is a ubiquitous super app with more than 1.3 billion global users. In addition, Ant Group's products involve money market fund Yu'e Bao, Sesame Credit,...
Continue Reading

Report type: Weekly Strategy “The Political Market and Value Investing Are Factors for Supporting Japanese Stocks” In the 31st August 2020 issue of our weekly report (Focus on the COVID-19 Catastrophe Shifting to Nursing Care and the Start of the Political Market), 11/9 was an SQ day involving futures and options transactions of the Nikkei average, and we mentioned the need to be careful of the increase in stock price volatility in the 2 weeks leading up to it. Even...
Continue Reading