Trump wins the election - Is Europe's fate as a loser already sealed?

What is the most significant outcome of yesterday’s election night for us Europeans? In summary, one could say: The opportunity to finally come of age. European states must draw closer together and can no longer rely on the transatlantic world police, the USA. Trump had announced that he would reduce or even completely cease support for Ukraine. Thus, it is in our own hands to ensure the security of our national borders. This primarily involves investments in defense companies and their commodities. Berlin must call London and Paris to initiate a common defense strategy. We need this to remain sovereign, and expenditures in this area will significantly increase.

For growth markets such as AI and human robotics, Trump’s deregulatory policies promise significant growth opportunities. However, the necessary commodities also represent a bottleneck here. Human robotics will only be able to achieve the projected 25% growth rate if sufficient rare earths are available for the robots’ electric motors. While the USA is already in the midst of building its own supply chain independent of China, we Europeans have nothing yet. This must change. Because Donald Trump will not share his rare earths with us – unless our industry migrates to the USA. (Something we absolutely do not want)

The cards have been reshuffled. What Europe makes of it now is crucial. Germany will also have new elections at some point, offering the chance for a new, broadly positioned foreign policy. And if Germany and the other EU states do their homework and jointly establish a secure supply chain for technology metals like gallium and rare earths like dysprosium oxide, the next four years could bring very good opportunities.

Even if Trump could mean an upswing for American companies, there is also the possibility that inflation will increase because of him. Trump governs through blackmail and pressure. Even during his first term, he repeatedly threatened Fed Chairman Jerome Powell to lower interest rates and thus fuel the economy. Trump’s money-printing policy led to immensely high inflation, for which, ironically, Joe Biden was then blamed. The high tariffs that Trump plans, especially against China, are also quite likely to increase inflation, as they could drive up consumer prices. A good piece of advice for investors, therefore, is to bet on what causes inflation in the coming legislative period, namely commodities. These are the trump card for the Trump era.