Hermes: Trump is Good for US Small Companies

US small and mid-sized stocks will rally if President Donald Trump pursues protectionist trade policies, says Hermes Investment Management – but only for three years

Karen Kwok 2 March, 2017 | 8:30AM
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US small and mid-sized stocks will rally if President Donald Trump pursues protectionist trade policies, says Hermes Investment Management – but only in the short term.

US stocks have rallied since the election of Trump, in the expectation his policies would mean increased infrastructure spending, deregulation and reduction in corporate tax in the US. The S&P 500 has repeatedly broke through past all-time highs, and Russell Midcap index, which measures performance of small-cap US stocks, has gone up 11.5% since the election result in November.

“Protectionism will be a short term positive for US small and mid-cap with the imposition of import tariffs making domestic producers more competitive,” said Mark Sherlock, lead portfolio manager of Hermes US Small & Mid Cap Equity fund, which holds a Neutral Morningstar Analyst Rating.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alphabet Inc A2,288.92 USD0.00Rating
Apple Inc126.27 USD0.00Rating
Federated Hermes US Smid Eq R EUR Acc5.79 EUR1.12Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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