Trump: 100 Days in Office

Trump’s first 100 days in office may have acted as a fillip for global equity returns, but this most unconventional of US presidents will now need to roll up his sleeves and deliver

Jupiter Asset Management 25 April, 2017 | 2:12PM
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Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Stephen Mitchell, manager of the Jupiter Global Managed Fund, says Trump now needs to deliver on some of his promised tax and regulatory reforms to maintain positive momentum.

The rally in global stock markets following the election of Donald Trump came about on expectations, so far largely unrealised, that his presidency would usher in a new era of low taxation, market deregulation and infrastructure spending that would boost US growth, with a positive knock-on effect for economies worldwide. Certainly, his election helped changed the mood among investors in the US, contributing to positive market sentiment and the so-called “Trump Bump”, but on the global economy, the 45th US President has also had his fair share of luck.

Trump Gets Lucky With Market Rally

Trump was elected just as the global markets were beginning to feel the beneficial effects of a renewed stimulus package put together by the Chinese authorities in early 2016 to boost an economy slowed by an anti-corruption drive. These stimulus measures have helped sustain growth both domestically and worldwide, alleviating concerns a Chinese slowdown would act as a drag on global GDP, and thus have been a helpful tailwind for Trump.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Boeing Co199.21 USD0.00Rating
JPMorgan Chase & Co161.93 USD0.00Rating
PepsiCo Inc161.14 USD0.00Rating

About Author

Jupiter Asset Management  Jupiter Fund Management is a UK fund management group, managing equity and bond investments for private and institutional investors.