The First 22 Days

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December 02, 2016

In the December Capital-Markets Outlook, we discuss the market reaction to the election, our outlook, and how we have positioned client portfolios. Markets were initially volatile in response to Donald Trump’s surprising win in the US presidential election. Since November 8, investors have been digesting the results and anticipating the impact of the new administration’s expected actions on various asset classes.

In our opinion, it’s too soon to know what specific policies president-elect Trump will actually pursue and which ones he will be able to implement, but we have provided a review of what we know so far. For example, policies such as lower taxes for corporations and individuals could stimulate US economic growth, but his calls for trade and immigration restrictions could slow growth and be highly disruptive. Given this uncertainty, we expect volatility to rise—perhaps repeatedly—from current subdued levels, as more details emerge in the coming months.

The CMO is now available in a new podcast Q&A format in which Senior Portfolio Manager Matt Palazzolo discusses the key points of this month’s issue, and can be accessed at your leisure from your computer or mobile device.