Q1 2017 Quarterly Outlook
Donald Trump will become the 45th U.S. President tomorrow and a new playbook might be just what the U.S. economy needs to reach its full potential. The markets have reacted accordingly since election day as equity markets have rallied while interest rates have spiked.
We believe the transition of the market’s focus from monetary policy to fiscal policy to create jobs and spur growth is a healthy one. Trump also has the infrastructure beneath him to potentially accomplish significant policy changes. In summary, the stage is set for reflation.
We also know that Trump will be difficult to forecast and it will be a quick changing environment. Furthermore, the degree to which improving sentiment will flow through to actual behavior along with the timing and magnitude of actual policy execution are the big questions ahead.
In light of this significant shift in what and how government policy is pursued, we have published a special report on “Preparing For A Trump Presidency” in addition to our Quarterly Outlook.