Following the results of the elections in the United States, in which the Republican Party emerged victorious, Wall Street has reacted upward with the expectation of deregulation and a tax cut that would benefit North American companies, despite the increase in tariff rates. which Donald Trump has also promised in the election campaign.
But Olivier de Berranger, CEO and co-investment director of La Financière de l’Echiquier (LFDE), visiting Madrid to present the firm’s strategy, assures that a few months must still pass until it is known who will make up the economic team of the 47th president of the United Statesespecially the Secretary of the Treasury, taking into account that in his first term he had members of his traditional party while now they will be ‘MAGA fans’, Berranger jokes, referring to the fact that they will be people convinced of the program that Trump intends to implement.
A program that includes a very strict immigration policy, with the intention of carrying out mass deportations of irregular immigrants that would put pressure on the labor market. And this will be precisely, according to Berranger, one of the points that investors will monitor most closely, in an economy like the North American one that until now has shown resilience.
“Immigration policy will be the main drivers of inflation in the United States, more than the increase in tariffs,” says the CEO of LFDE, for whom the FED will have reasons to analyze how these measures are implemented. In fact, the North American supervisor may feel pressured at a time when must decide the pace of interest rate cuts before it may be too late.
In this context, risk assets take center stage, especially industrial or pharmaceutical firms versus renewable energy companies or companies related to the energy transition, but with the nuance, Berranger points out, that “there will be a balance between what has promised and what he can do to not harm Elon Musk”, one of the main donors to the Republicans and the owner of Tesla, the first manufacturer of electric vehicles in the US.
With these things, and although the valuations of the North American stock market are very tight, the excess liquidity of investors, with 6 trillion dollars in monetary funds, could serve as a shock to the markets.
Registration of new funds
Beyond the macro vision of the firm, Berranger’s visit has served to explain the plans of the French manager in Spainone of the markets that they want to promote after the incorporation of Iván Díez Sainz as country head for the Iberian market at the beginning of this year.
Since last year, LFDE belongs to the LBP AM group, a management company owned 75% by La Banque Postale and 25% by Aegon Asset Management, and manages 27 billion euros in assets under management, after the integration of Tocqueville Finance.
Known above all for its strategies of small and mid capswhere it manages 4.3 billion euros, and thematic funds (with 6.2 billion euros), including the well-known Echiquier Artificial Intelligence and Echiquier Space, the manager also wants to be known for its convertible and absolute return bond fundsapart from wanting to promote the unlisted asset platform of LBP AM, where it manages 9.5 billion euros in corporate debt, infrastructure and real estate funds.
One of the singularities that characterizes La Financière de l’Echiquier, in the opinion of its CEO, is the high conviction of the portfolios they manage, which leads them, for example, to have only twenty securities in their fund. Echiquier World Equity Growth.
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