East Asia Bank's chief investment strategist, Lee Chun-hau, stated that the "red tide" and "America first" policies are anticipated to make US stocks outperform other regions in the first quarter of 2025. According to historical US earnings and the recent price-to-earnings ratio, the S&P 500 index is expected to fluctuate between 6178 and 6335 points this quarter. He expects the healthcare, non-essential goods, technology, materials, and industrial sectors to perform well in the US market.

He further added that the risk prediction zone's bottom is about 5420 points, which is lower than the above-6000-point level, suggesting a potential 10 per cent downside, implying that the index may see a correction before a rebound. Investors should pay attention to risk management.

Lee mentioned that the global multipolarisation is expected to give rise to various international frictions, and the Trump-style "America first" is excluding allies, such as the EU and UK, which may be caught in a situation where both sides impose tariffs, and China is also preparing for the worst. The trade relations of all parties are likely to be reshuffled.

He added that Trump's return to the White House is expected to support corporate bonds and emerging dollar bonds, and the interest rate changes will be favourable for corporate bonds. After Trump's inauguration, the risk in the European bond market is expected to rise, but there are still good choices in Asia. The 10-year yield is predicted to be between 4.25 and 4.36 per cent, and the 2-year yield between 3.67 and 3.98 per cent.