Elections Instead Of Accumulation Of Power

"Many people have availed themselves of the authority to cast their vote." Who talks like that? That's right, an Austrian politician on the Sunday following the 2024 National Council elections.

All the fuss surrounding the vote is now behind us. But that doesn't mean that everything’s peachy from my perspective. A government still needs to be formed.

For investors, a crucial aspect will be which economic programs are implemented. Will there be future incentives for long-term wealth creation? Will new wealth taxes be introduced? Whatever happens, we cannot influence it. So there’s no use losing sleep over it.

Democracy and free markets

On the international stage, Japan has a new Prime Minister in Ishiba-san. However, we’re not changing our Nippon allocation due to a change of the prime minister. And in the US, President number 47 will soon be elected. Regardless of the outcome, entrepreneurs will continue to focus on meeting customers needs and managing costs. They will adapt to the environment and face daily competition head-on.

The most crucial factor here is free markets – complete with all rules of the game and necessary regulations. Democracy must never be called into question. The certainty that the cards are reshuffled every few years through elections protects us all from the dangerous accumulation of power.

Since George Washington, the first US President after the American War of Independence, betting against America has never been wise. In the Gutmann equity strategy too, more than half of the companies are headquartered in the USA. The vast majority are active worldwide.

Entrepreneurship increases wealth

The stock market will see both good years and bad. More often than not, it will go up. Nevertheless, we’ll face nerve-wracking bear markets. Looking back - and it doesn't have to be to as far back as 1789 - reassures us and shows impressively that entrepreneurship increases wealth. One must be convinced of this. Indeed, firmly believe in it. Otherwise, major price swings will knock us off track.

Gutmann stands ready should difficult times return. We’ll be right there alongside our clients. We’ll inform, react and provide transparency. But I'll stop here – after all, I’m not on the campaign trail.

Disclaimer: This is a marketing communication. Investments in financial instruments are exposed to market risks. Past performance does not predict future returns. Forecasts are not a reliable indicator of future performance. Tax treatment depends on each client's personal circumstances and may change in the future. Bank Gutmann AG hereby explicitly points out that this document is intended solely for personal use and for information only. Publishing, copying or transfer shall not be permitted without the consent of Bank Gutmann AG. The contents of this document have not been designed to meet the specific requirements of individual investors (desired return, tax situation, risk tolerance, etc.) but are of a general nature and reflect the current knowledge of the persons responsible for compiling the materials at the copy deadline. This document does not constitute an offer to buy or sell or a solicitation of an offer to buy or sell securities. The required data for disclosure in accordance with Section 25 Media Act is available on the following website: https://www.gutmann.at/en/about-gutmann