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Worried about Trump? Corporate US might just weather the storm
The US, through its corporate sector, has structural advantages over the rest of the world
The election of Donald Trump as US president has introduced a new round of uncertainty into markets, which should persist for at least the short term. However, we should not underestimate the structural advantages of the US and its companies in plotting our investments path for the future. So says Andrew Shard, head of international research at Investec Wealth & Investment UK. “Markets don’t like uncertainty, but unfortunately we will probably have to live with it for a few months, at least until things settle and we know exactly what Trump’s policies are and who his team will be,” says Shard. Specific risks include interest rates, global trade, and cautiousness on the part of corporate US in the short term. Trump threatened in his election campaign that he would get rid of the president of the Federal Reserve (Fed), Janet Yellen. On the corporate front, Shard argues we could see companies holding off on capital expenditure and hiring, at least until there is some certainty. This co...
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