The arrival of Donald Trump to the White House has had a calming effect on the markets, as demonstrated by the recent increases in the North American stock markets. But after this first effect, based on its policy of tax cuts and deregulation of certain sectors, analysts begin to wonder about the scope of its measures, taking into account that many of them have an inflationary nature, such as the imposition of tariffs on Chinese products.
The appointments known at the moment for his future government are also being scrutinized to try to guess what the new president’s next steps will be. And at DWS, one of the most important European asset managers by volume of assets, they are clear that “Trump must be taken seriously, but not literally,” depending on what he writes on social networks, explained David Bianco, head of investment. for the manager’s Americas region during the outlook presentation. In this sense, the manager is betting on sectors such as health, thanks to the innovation capacity of North American companies, utilities and the financial sector.
Regarding European equities, they maintain their preference for small caps, which could benefit from an environment of asset reallocation by global investors, while in banking they remain positive.
Regarding fixed income assets, the German manager prefers investment grade corporate bonds, and especially senior bank debt, in a context in which investors have priced in a low growth scenario but with a stable financial.
On China’s side, the firm lowers the level of tariffs that Trump could impose from 60% to 35%, which could be implemented starting in the second half of the year. Although its effect on the Chinese economy would be more limited given the regional integration it has achieved.
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