As the world awaits the inauguration of the 45th President of the United States later today, Geir Lode, Head of Global Equities at Hermes Investment Management, discusses what investors have learnt about Donald Trump’s plans since his surprise election in November.
Ahead of the US elections, many investors viewed a Trump victory negatively and markets reacted accordingly, falling sharply in the immediate aftermath of the result. Trump was viewed as a challenge to the world order, a threat to the system that many investors had expected to continue in perpetuity. However it took mere hours for the sentiment to shift as investors began to anticipate a fiscal splurge, with pro-growth policies and a business-first stance viewed as beneficial for the earnings of US companies. The optimism has extended beyond investors, with US consumer sentiment also reacting favourably to the new President-elect.