C-QUADRAT Asset Management (UK) about the US election 2016
The current market volatility and the results of this presidential race should be reinterpreted within a broader framework.
The nomination of a republican candidate as President of the United States, matched with a majority in the congress, should allow Mr. Trump to implement new measures supporting economic growth by, among the others, increasing infrastructural spending and supporting the pharmaceutical sector. Such measures would further strengthen an already resilient economy where both employment and companies’ results are solid.
In the longer term, these developments would be positive for equity markets and negative for long term rates via increasing inflation expectations.