US President Biden announced his withdrawal from the 2024 presidential election, fully supporting Harris to secure the presidential nomination.

Amid recent media speculation, the final outcome is now settled. A last-minute change in the party's presidential candidate may still leave the Democrats with slim chances of victory.

If a fully victorious Republican government emerges, the likely policy mix would be loose fiscal policies + relatively accommodative monetary policies, coupled with lower tolerance for illegal immigration.

However, historical trends suggest that since the majority of US household wealth is concentrated in financial assets, Trump places greater emphasis on the stock market. The recent sharp decline in major stocks due to election uncertainty, along with the market shift from large-cap to small-cap stocks and from high to mid-low valuation styles, is largely a preemptive adjustment based on election expectations.

In this cycle, the fundamentals of US mega-cap stocks, based on released earnings, show no serious issues—the key problem remains overvaluation. In contrast, the EPS growth of small and mid-cap companies has been mediocre. Once tech stocks correct to more attractive levels, their investment value will re-emerge.