Flying in the face of doomsayers’ predictions, markets have soared since the election of US President Donald Trump. The largest economy in the world is doing well, with the unemployment rate at almost record lows. But how long will it take for Trump’s planned infrastructure improvement programme to get off the ground? And which stocks are expected to be winners over the next few years?
The mighty Trump reflation trade has propelled world stock markets ever higher since Donald Trump’s surprising win in the US presidential elections. Prices of metals and other raw materials have soared; the US dollar has gained impressive strength; US and European markets have been hitting record high after record high; US bond yields have fallen sharply; and most emerging markets and emerging-market currencies have traded to 19-month highs.
Risk appetite is most certainly back in markets, along with a hefty number of very high expectations. By the time this article is published, though, the entire game may have changed and the Trump reflation trade may already have come to an end. This doesn’t seem very helpful, especially in retrospect, although perhaps it serves as a testament to how uncertain world markets are about what to expect from the Trump administration. A bit more on that later, though. In true Trump style, the details are not to be revealed yet.
Most of Trump’s rhetoric during his election campaign was centred on “making America great again”. Something that the market is now expecting him to deliver on. So much so that the S&P 500 has made several records, including 17 record-high closes and a rally of around 12%, adding more than $2.8tr in value to US markets since Trump’s election win. This is truly an enormous reaction, and one that the new president is only too happy to take the credit for. But what has he really done so far?
Soaring stocks
هذه القصة مأخوذة من طبعة 9 March 2017 من Finweek English.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة 9 March 2017 من Finweek English.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
